With the end of the financial year fast approaching, now is the time to review your tax position in order to take advantage of tax concessions offered by the government.
Co-Contribution – $1000
To help boost our superannuation balances, the government has a dollar-for-dollar matching scheme. If your taxable income plus the value of salary sacrifice contributions is below $61,920, you can receive up to $1000 from the government by making a $1000 non-concessional contribution (using your own after-tax money) to your superannuation.
Low Income Tax Offset (LITO) – $1350
By salary sacrificing if you are employed or making concessional contributions if you are self employed, you can potentially reduce your taxable income to below $63,750 which then allows you to qualify for the LITO of $1350 or a portion of it.
This is the only government benefit that you can take advantage of by making concessional contributions with before-tax money to your superannuation.
Spouse Contribution Splitting – $540
If your spouse earns below $10,800, you may qualify for a $540 tax offset by making a non-concessional contribution of at least $3000 with your after-tax money to their superannuation fund. You can receive a portion of the $540 if your spouse earns up to $13,800.
To qualify for any/all of these tax concessions, superannuation contributions must be made before 30 June 2010 so they can be included in your tax return. Conditions do apply to all “free money opportunities” outlined here, so contact Suggars & Associates to learn more.
The advice in this article is of a general nature only and does not take your personal circumstances into account. You should seek financial advice before making any investment or financial decisions.