Super tips for taxing times
WITH piles of receipts to sort through and oodles of paperwork to organise, AMP financial planner Stuart Wright understands tax time can be a rather taxing experience.
But by putting in a little effort at the end of the financial year, Mr Wright said people could reduce the amount of tax they pay and keep more of their hard-earned cash in their pocket.
He encourages people to get smart about their super. For many people, contributing to super is one simple way to minimise their tax bill and boost their retirement savings at the same time.
For others, by topping up their super before June 30, they may be eligible for a tax offset or even a government co-contribution.
Super contributions are 100% tax deductible for self-employed people such as sole traders. By making tax-deductible super contributions, they can significantly reduce their tax liability on their income from business sources, investments or capital gains. But care needs to be taken not to exceed contribution limits. Those who contribute to their spouse's super may be entitled to claim an 18% tax offset, if their spouse is not working or earns less than $13,800 a year.
Make the most of the government's co-contribution, Mr Wright advises. People earning less than $31,920 this year can take full advantage of the government's co-contribution scheme if they make an after-tax contribution to their super.
TOP TAX TIPS
Super contributions are 100% tax deductible for self-employed workers
Eligible people who earn less than $31,920 this year can take full advantage of the government's co-contribution scheme
People aged 50 and over can currently receive employer superannuation
Those who contribute to their spouse's super may be entitled to claim an 18% tax offset, if their spouse is not working or earns less than $13,800 a year
