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Can you benefit from the new super changes?

This year, a key super change means almost everyone, including employees, can make an extra tax deductible super contribution to bring their annual total to $25,000.

New super rules come into effect this financial year that could maximise your super balance while saving you tax.

A key change is that the new concessional contribution cap of $25,000 applies to all individuals under the age of 75 (although if you’re over 65 you must pass a work test).

Ordinarily, self-employed individuals and those who earn their income primarily from passive sources make super contributions close to the end of the financial year and claim a tax deduction.

For the first time this financial year, individuals who are employees may also use this strategy. That means if you’d like to top up the super paid by your employer to a cap of $25,000, you can do it and claim a tax deduction.

The advantage of this strategy is that superannuation contributions are taxed at between 15% and 30% compared to typical personal income tax rates of between 34.5% and 47%.

Your contribution must be in your fund by 30 June and the process can take a few days. So you’re interested, talk to us about this and other super changes urgently – well before the 30 June 2018 deadline.

Contact us today.

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