EOFY – It’s a new day for super tax deductions

The end of financial year sales have already started and while the 30th of June might seem like a while away NOW is the right time to check on your superannuation.

 

A Super game changer for employees –

 

2017/18 is the first financial year when employees have access to the same flexibility as self employed people with respect to super.

In the past if you wanted to claim a tax deduction to put money into super you either had to have your employer do it for you (salary sacrifice) OR be a self employed person.

Now nearly any employee can put extra money into super and claim a tax deduction.

To do this you simply need to check the method by which your super fund accepts money – pay money into your account and then complete an “s290 – notice of intent to claim or vary a deduction for personal super contributions” form.

Your super fund will have a special form just for you. For SMSF clients you can download a form from the ATO here:https://www.ato.gov.au/uploadedFiles/Content/SPR/downloads/n71121-11-2014_js33406_w.pdf

 

The best deduction you can get

Super contributions are the BEST tax deduction you can get – it’s the only one where you can reduce your tax AND you get to keep the money. So before you rush out and buy a depreciating asset like a car, some tools or clothes to claim a deduction consider saving for your future.

Of course another worthwhile tax deduction is one that gives you nothing but means everything;that’s a charitable donation to a worthy charity.

Here are the charities that we support:

https://secure.fundraising.cancer.org.au/site/SPageServer?pagename=Donate

https://www.guidedogs.org.au/donate

 

Before you act

Before you decide to direct money into your super make sure you do the following:

 

  1. Remember the LIMIT for ALL working Australians is $25,000 per year – if you think your employer contributions and any money you have already put in will get close to this number CHECK or CALL before you do anything. If you breach this limit it’s difficult to fix and there are tax consequences.
  2. IF you have life insurance separate to your superannuation and that life insurance says “Mastertrust” or “superannuation” on the statement CALL BEFORE you make additional contributions because the premium is likely a contribution to super.
  3. CHECK with your employer to see when they make contributions before you do anything – some employers pay super quarterly and you might think you have capacity to put more into super without realising that your employer owes your fund some money.

 

If you have personal insurance paid through your superannuation fund to save on cashflow remember that doing this WILL erode your superannuation balance unless you have more money going in. It’s very important to us that you are protected but it’s also important to make sure your super isn’t going backwards because you are not topping up to cover the premiums.

 

We’re here if you need us

It’s our job to make sure you’re in the best position for retirement and protected along the way. Don’t hesitate to call us to check on what you need to do to review your superannuation contribution position.

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