Adding to your superannuation before June 30th

June is the calendar’s money month, and June 30th is the deadline for various financial decisions. Every financial decision is important, and adding to your superannuation before the June 30th deadline is worth considering.

If you’re self-employed or a professional with an irregular income, you can claim a deduction on personal concessional superannuation contributions. This will lower your taxable income, which may reduce your tax bill or increase your refund.

Investment earnings inside superannuation are taxed at a maximum of 15%. This is significantly lower than the marginal tax rate on investment earnings outside of super. Moving investments into superannuation provides long-term tax savings and quality growth opportunities. You must seek professional advice from your financial advisor or tax planner.

If your superannuation balance is less than $500,000, there is scope to carry forward unused concessional cap amounts from the past five years. This option is advantageous if you had a high taxable income year.

Superannuation is a high-yield investment vehicle. Each dollar invested benefits from growth in a low tax rate environment. When the opportunity exists to add to your superannuation portfolio, taking advantage when your circumstances allow is recommended.

Some conditions include age limits, eligibility rules, and caps, particularly if you are over 67 or nearing $1.9 million in total super balance. Keep in mind, time is running out for this financial year. Your super fund must receive the contribution before June 30th.

Speaking to your financial advisor is essential before making any decision. If you fit into the criteria and want to explore the option of making additional contributions to your super before June 30th, contact Cayle today for expert, tailored financial advice.