Here are some options you could consider
Tax-deductible super contributions
You may be eligible to claim a tax deduction for your personal super contributions.
The current before-tax contributions cap is $25,000 per financial year. Any contributions made above these limits will attract additional tax.
However some of the things that you will need to take into consideration are:
- your age, sources of income
- the level of salary sacrifice and
- certain other employer contributions made for you
Salary sacrifice to top up your super
Much the same as a Tax-deductible super contributions, however a salary sacrifice is an arrangement where part of your before-tax wage or salary is paid into your super account instead of being received as take-home pay. The tax you save depends on how much you earn.
Salary sacrifice contributions count towards your annual before-tax contributions cap of $25,000 per financial year.
However some of the things that you will need to take into consideration are:
- how much you can afford to contribute to your super from each pay cycle?
- Not all employers offer salary sacrifice. Please talk to your employer to find out if they can set up salary sacrifice arrangements for you.
After Tax contribution
After-tax super contributions are made from money you have already paid income tax on and won’t be claiming a tax deduction on. The advantage of investing in a superannuation environment compared to outside super is that earnings within your super accumulation account are taxed at up to 15%, compared to your marginal tax rate which applies to investments you may hold outside of super.
The annual limit for after-tax contributions is currently $100,000 if your total superannuation balance is below $1.6 million. In certain circumstances, you may be able to bring forward three years of after-tax contributions into one year, contributing up to $300,000.
First home buyers
You may be able to make voluntary superannuation contributions to use towards a deposit for your first home under the First Home Super Saver Scheme (FHSSS). Voluntary contributions you make, plus associated earnings, can be accessed from 1 July 2018 subject to meeting eligibility criteria.
The total amount of contributions you can withdraw is capped at $15,000 a year (or a maximum of $30,000 in total).
Downsizer contributions
From 1 July 2018, if you are planning on downsizing your family home of ten years or more and are aged 65 or over, you may be able to contribute up to $300,000 from the sale proceeds to superannuation as a downsizer contribution.
Downsizer contributions do not count towards your before or after-tax contribution caps or caps on contributions for total superannuation balance.
If you wish to see advice, please contact one of our Altitude Financial Advisers.
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The information contained on this website is general in nature and does not take into account your personal circumstances, financial needs or objectives. Before acting on any information, you should consider the appropriateness of it and the relevant product having regard to your objectives, financial situation and needs. In particular, you should seek the appropriate financial advice and read the relevant Product Disclosure Document.
