If the Australian government generously provides us with some opportunities to save on tax, why not give yourself the chance?

Smart Super Strategies for Tax Offset or Government Contributions Towards Your Super.

Want to help boost your retirement savings while potentially saving on tax?

Here are smart super strategies to consider:

1. Add to your super – and claim a tax deduction

If you contribute some of your after- tax income or savings into super, you may be eligible to claim a tax deduction. This means you’ll reduce your taxable income for this financial year – and potentially pay less tax. And at the same time, you’ll be boosting your super balance.

2. Get more from your salary or a bonus

If you’re an employee, you may be able to arrange for your employer to direct some of your pre-tax salary or a bonus into your super as a ‘salary sacrifice’ contribution.

Again, you’ll potentially pay less tax on this money than if you received it as take-home pay – generally 15% for those earning under $250,000 pa, compared with up to 47% (including Medicare Levy).

3. Convert your savings into super savings

Another way to invest more in your super is with some of your after-tax income or savings, by making a personal non-concessional contribution.

Although these contributions don’t reduce your taxable income for the year, you can still benefit from the low

tax rate of up to 15% that’s paid in super on investment earnings. This tax rate may be lower than what you’d pay if you held the money in other investments outside super.

4. Get a super top-up from the Government

If you earn less than $54,838 in the 2020/21 financial year, and at least 10% is from your job or a business, you may want to consider making an after-tax super contribution. If you do, the Government may make a ‘co-contribution’ of up to $500 into your super account.

5. Boost your spouse’s super and reduce your tax

If your spouse is not working or earns a low income, you may want to consider making an after-tax contribution into their super account. This strategy could potentially benefit you both: your spouse’s super account gets a boost and you may qualify for a tax offset of up to $540.

You’ll need to meet certain eligibility conditions before benefitting from any of these strategies. If you’re thinking about investing more in super, reach out to us on [email protected] to book you for a a complimentary meeting. We can help you decide which strategies are appropriate for you.