Depending how much you’ve earned, you may be eligible for a tax-free super deposit from the government ―but you’d need to have made an after-tax contribution of up to $1,000 to your super before 30 June 2015.
If you’ve earned less than $34,488, you may be entitled up to the full amount―$500.00 as a government co-contribution. The co-contribution you’ll qualify for will decrease by 3.33 cents for every dollar you’ve earned between $34,488 and $48,488. And your eligibility ceases altogether once you’ve earned more than $48,488.
Find out more about the government co-contribution.
Lump sum investment
Do you need to boost your super in the lead up to retirement?
You may be able to make an after-tax contribution to your super of up to $180,000 (or more using the bring-forward rule) before 30 June 2015.
If you’re aged 65 or older you’ll need to meet the work test before contributing a lump sum so be sure to seek advice first.
You could make an after-tax contribution to your super and claim it as a tax deduction. You or your business may be able to claim up to $30,000 for contributions to your superannuation fund ($35,000 if you’re 50 or older).
You’ll need to fill in a notice of intent form before submitting your tax return―and make the contribution before 30 June. But be aware of the contribution limits otherwise you’ll pay extra tax.
It’s a simple way to reduce your tax this year and build wealth for later on.
Help your spouse
If your spouse or partner earned between $0 and $13,800 this financial year you may be able to pay up to $3,000 into his/her super and claim a tax offset of 18%―that’s a tax saving of up to $540.
It’s an easy way to create a better tomorrow and keep more money in your hand at the same time.
Find out more about tax offsets on spouse contributions.
Gearing up for retirement
Depending on your age (usually 55 or older), you could reduce your working hours and supplement your income with a regular income from your super.
Once you turn 60, the income you take from super will be tax free.
To find out more about your options when moving on from work – read AMP’s article on the transition to retirement.
Boost super while working
If you are 55 or older a transition to retirement strategy can help boost your super without you having to reduce your after-tax income. Put simply, you could increase your salary sacrifice contributions and supplement your income with tax-effective pension payments from your super.
To find out how much super is enough, check out AMP’s Budget planner calculator to assess your current financial situation and estimate how much you need to save for retirement.
How to contribute to super
One of the biggest advantages of super is that earnings are taxed at a maximum of 15%, instead of the tax rate that may be applied to your gross income.
Investing in super can make financial sense. And there are several ways to put money into your super―using pre-tax dollars, money from your take-home pay, government co-contributions and spouse contributions.
Contact your super fund for details about depositing money into your super and if you’re aiming to reduce your tax bill before 30 June, remember to allow three business days when making deposits made via BPAY.