The end of the financial year is fast approaching and there are a range of strategies available that may help you:

  • boost your super,
  • save on tax and
  • retire with more.

Many require you put them into action before June 30, plus the sooner you start the sooner you start seeing benefits!

All wealth strategies are best applied with the guidance of a professional so contact VJC – your wealth coach.

 

  1. Spoil yourself!

Make a personal deductable contribution – for both employees and self-employed

  • If you contribute some of your after-tax income or savings into super, you may be eligible to claim a tax deduction.

This means you’ll reduce your taxable income for the financial year and potentially pay less tax.

  1. Get spoiled!

Salary Sacrifice – If you’re an employee, you may be able to arrange for your employer to direct some of your pre-tax salary or a bonus into your super as a ‘salary sacrifice’ contribution.

  • Keep in mind that personal deductible & Salary Sacrifice contributions count towards the concessional contribution cap, which is $25,000 for the 2020/21 financial year.
  • However, you may be able to contribute more than that without penalty if you didn’t use the whole $25,000 cap in 2018/19 or 2019/20 and are eligible to make ‘catch-up’ contributions
  1. Live large!

Make a Non Concessional Contribution (NCC)–  You can invest more in your super is with some of your after-tax income or savings by making an NCC.

  • Keep in mind the non-concessional contribution (NCC) cap, which in 2020/21 is $100,000 – or up to $300,000 if you meet certain conditions using the bring it forward rule.
  1. The gift!

Get a super top-up from the Government – a ‘co-contribution’ of up to $500 into your super account if you make an NCC after-tax super contribution, but only if;

  • If you earn less than $54,838 in the 2020/21 financial year and
  • At least 10% is from your job or a business.
  1. Happy Valentine’s day!

Boost your spouse’s super and reduce your tax – make an NCC into spouse’s super account and you may qualify for a tax offset of up to $540. But only if;

  • Your spouse is not working or earns a low income.
  • Benefits both you both you and your spouse.

 

Contact VJC – your wealth coach before June 30 if you’re thinking about investing more into your super, we can:

  1. Update your Wealth/Financial plan.
  2. Create one for you.

Regards

The VJC Wealth team

Warning: Always seek advice before acting, the penalties for getting it wrong can be expensive!

 

General Advice warning: the information in this article is general in nature, it is not advice specific to your needs. If you want to act upon the information in this article then you should seek advice from a qualified professional. VJC WM accepts no liability to any party for acting from this information unless they have sought advice in a formal engagement with VJC WM for this purpose.