Before the financial year comes to a close, individuals and businesses are presented with numerous opportunities to get the most out of their finances—from claiming tax deductibles to augmenting retirement savings.Implementing smart end of financial year strategies may enhance your current financial strategies in getting more tax savings and preparing a healthy nest egg come retirement age. As talks about modifying the current superannuation policy make their way in the news, now’s a good time to roll up your sleeves and get started on reinforcing your superannuation funds.
Make additional contributions—and claim a deduction
Working individuals are guaranteed to receive mandatory contributions from employers, which is 9.5% of the ordinary time earnings. They can supplement this by making personal contributions from after-tax income, an inheritance, or extra cash. Additional super contributions are great because they reduce the taxable income, potentially making you pay less tax in the EOFY while augmenting your retirement fund.
Sacrifice a portion of your salary
Employers can arrange to deduct a portion of an individual’s salary and put it instead to a super fund via salary sacrificing. The money will come from pre-tax income, thereby reducing the taxable income. Salary sacrifice is on top of the guaranteed super contribution companies pay, which means employees get more in their super funds.
Convert to super savings
Aside from your super, you can invest some money for your retirement by making an after-tax super contribution. This should minimise the tax deducted from your investment earnings.
Top up from the Federal Government
The government can extend assistance through a co-contribution amounting to $500 to individuals who earn less than $52,697 per annum either from their job or business.
Contribute to spouse's super
For those with spouses who make less than $40,000 per annum, it’s possible to make an after-tax contribution and qualify for a tax offset by as much as $450.Adding to one’s super savings can pave the way for a more comfortable retirement, making it possible for you to realise your lifestyle potential. And because superannuation contributions is a long-term investment, it’s important that individuals take the most recommended steps which financial planners can help with.Are you taking the right steps towards a comfortable retirement? Let us help steer you in the right direction. Talk to our Strategic Wealth Planners and schedule a consult by clicking here.IMPORTANT INFORMATION: This blog has been prepared by Modoras Pty. Ltd. ABN 86 068 034 908 an Australian Financial Services and Credit Licences (No. 233209), located at Level 3, 50-56 Sanders St, Upper Mt Gravatt Q 4122. The information and opinions contained in this fact sheet are general information only and is not intended to represent specific personal advice (Accounting, taxation, financial, insurance or credit). No individuals personal circumstances have been taken into consideration for the preparation of this material. Any individual making a decision to buy, sell or hold any particular financial product should make their own assessment taking into account their own particular circumstances. The information and opinions herein do not constitute any recommendation to purchase, sell or hold any particular financial product. Modoras Pty. Ltd. recommends that no financial product or financial service be acquired or disposed of or financial strategy adopted without you first obtaining professional personal financial advice suitable and appropriate to your own personal needs, objectives, goals and circumstances. Information, forecasts and opinions contained in this fact sheet can change without notice. Modoras Pty. Ltd. does not guarantee the accuracy of the information at any particular time. Although care has been exercised in compiling the information contained within, Modoras Pty. Ltd. does not warrant that the articles within are free from errors, inaccuracies or omissions. To the extent permissible by law, neither Modoras Pty. Ltd. nor its employees, representatives or agents (including associated and affiliated companies) accept liability for loss or damages incurred as a result of a person acting in reliance of this publication.