While the contribution limits for super have gone down this year, there’s still opportunities to take advantage of the generous tax environment super offers.
Make the most of your before-tax contributions
Concessional contributions are contributions you can make to super with your before-tax salary. For most people concessional contributions are taxed at just 15 per cent — not your marginal tax rate. That’s a big tax cut and puts your money to work — in your super account.
This financial year, you’re allowed to contribute, or ‘salary sacrifice’, $25,000 of concessional contributions. Remember — your employer’s 9.5 per cent compulsory contributions count towards your concessional contributions. And, from 1 July 2018 new rules let people with total super balances under $500,000*, ‘carry forward’ up to five years of the unused portion of their concessional contributions cap.
How do you get started?
Whether you’d like to make a one-off contribution or set up an ongoing arrangement, speak to a Bridges financial planner and contact your employer’s payroll department.