by Tim Seng | Tax & Business Advisory Accountant | Jun 6, 2019 | News
The ATO allows an individual to claim up to $25,000 per year of concessional contributions. This means if you make a voluntary contribution into your superannuation fund you may be able to claim this as a tax deduction if your total contributions for the year (this includes the super your employer pays), hasn’t exceeded the $25,000 cap. This method not only allows for a nice tax deduction, it’s also an effective way to slowly increase your retirement fund. There are many ways to get your money into super, such as, you can set up a direct debit for any amount you like to go into your fund when it suits you.
Along with the tax deduction benefit of making personal super contributions, the ATO have an incentive called a super co-contribution which is designed to assist eligible individuals to increase their super balance. The way this scheme works is the Government will match your contribution with a co-contribution up to certain limit (maximum entitlement is $500). For example, if you contribute $1,000, the government will put $500 into your fund, which is another great incentive to put more money into superannuation.
There are many tests and thresholds involved in determining if your contributions are deductible, to find out more about all of the above come along to our Salary & Wage Earner Seminar next week.