If you make personal super contributions (generally the after tax contributions you make to a super fund) you may be eligible for the super co-contribution. This is an amount paid by the government in addition to what you or your employer contribute.
You may be eligible for a super co-contribution if you:
- are either an employee or self-employed
- earn less than a specified amount a year
- make after-tax contributions to your super fund before 30 June.
Don't forget to make sure your super fund has your TFN (Tax file number), otherwise your fund can't accept your personal contributions. If you are unable to make personal contributions to your fund you won't be eligible for the super co-contribution.
Super contribution caps
There are limits on the amount of money you can put into super each financial year before you have to pay extra tax. These limits are called super contributions caps. If you contribute more than the cap amount, you will pay extra tax. Make sure you review your super contributions regularly. You should check and, if necessary, adjust your current super contributions to ensure you don't exceed the contributions caps.
Salary sacrificing
Salary sacrificing is an arrangement with your employer in which you can sacrifice your pre-tax income into a variety of benefits, including super.
When you salary sacrifice into super you can increase your super account whilst reducing your taxable income, which means you pay less tax.
Make sure that you are aware of all of the terms of your salary sacrificing agreement and that they are fully outlined and clearly documented.
When you salary sacrifice into super you can increase your super account whilst reducing your taxable income, which means you pay less tax.
Make sure that you are aware of all of the terms of your salary sacrificing agreement and that they are fully outlined and clearly documented.
Please contact us to discuss your salary sacrifice options.
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