Superannuation & Tax Deductions

Superannuation concessional contributions

Superannuation is something we should all be thinking about regardless of our age.  Most people know that your employer puts away super for you every pay at the minimum rate of 9.5%.   For the younger ones among us, it may not really feel like your money but it is as important as any other savings you may have.  If you don’t already regularly do it, log into your super account, you may be pleasantly surprised how much you have.

Employer contributions are made pre-tax so they have the same effect as a tax deduction.   The maximum amount of super contributions that you can get a tax deduction for is $25,000, these are known as concessional contributions.  You have always been able to ask your employer to increase these contributions through a salary sacrifice arrangement which has been a great strategy for many people to boost their super. 

Did you know that ALL individuals aged up to 65 can make additional concessional contributions up to $25,000 and receive a tax deduction for these amounts?  If you would like to make a contribution this MUST be deposited into your superannuation fund on or before 30th June 2019.  To ensure this occurs it is best to make the contribution a week or so before 30 June. 

If you would like to know more about this and whether it is suitable to your individual circumstances, please contact JHL Accounting on 03 9778 3245 or submit a contact form here

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