Making super contributions in Australia is an essential aspect of retirement planning and ensuring financial security for the future.
In Australia, the superannuation system is designed to help individuals save for their retirement, and it offers certain tax benefits to encourage people to contribute to their superannuation accounts.
When establishing a super contribution strategy, it is important to review your current income tax position and expenses to ensure you can maximise the wealth effect (reduction of personal income tax payable) from super contributions without sacrificing your need to meet short-term expenses.
Legislation regarding super is likely to change each year; therefore, it is important that you have your arrangements reviewed each year.
Super contribution areas of advice can include:
- Optimise tax deductible contributions into super.
- Catching up on missed concessional contributions from previous years (if available).
- Establish a salary sacrifice arrangement with your employer and contribute excess money into super.
- Make a non-concessional personal contribution to super.
- Consider moving personal assets into your superannuation accounts so their earnings are not taxed at your marginal tax rates.
- Use the proceeds from the sale of your home to make a downsizer contribution to superannuation above the normal contribution cap limits.
- Access the Government Co-Contribution by contributing into super.
- Contribute your personal injury settlement into your superannuation fund.
- Contribute to super using your small business capital gains tax (CGT) cap.
- Make a spouse contribution into super.