It’s the end of the financial year and SUPER STRATEGIES are both

  1. TAX EFFICIENT (reduce the tax you pay!)
  2. WEALTH CREATORS (both long term investment and retirement goals and taking advantage of market opportunities now!)

They are as the title suggests, SUPER! Consider the following QUICKLY as the opportunity to take advantage this year is ending fast

  • Contributions have to be cleared funds in your super before June 30th , many funds stop taking contributions around various dates e.g. June 24th.
  • You must consider the contribution caps, concessional cap $25K p.a. and non-concessional caps exist ($100K p.a. or $300K for 3 years).
  • R.S.A 🙂 Remember Seek Advice from your equally SUPER ADVISER in Wealth/Financial and/or Accounting/Tax before acting.


Super strategy 1.

PERSONAL DEDUCTIBLE CONTRIBUTION – Make tax-deductible super contributions (very similar to a salary sacrifice contribution but easier!)

By making a personal super contribution (PDC) you get to claim the amount as a tax deduction and very likely you may pay less tax and create long term wealth in super.

How does the strategy work?

If you make a personal super contribution, you may be able to claim the contribution as a tax deduction and reduce your assessable income. The contribution will generally be taxed in the fund at the concessional rate of up to 15%¹, instead of your marginal tax rate which could be up to 47%². Depending on your circumstances, this strategy could result in a tax saving of up to 32% and enable you to increase your super.

How do you claim the deduction?

To be eligible to claim the super contribution as a tax deduction, you need to submit a valid ‘Notice of Intent’ form. You will also need to receive an acknowledgement from the super fund before you complete your tax return, start a pension or withdraw or rollover money from the fund to which you made your personal contribution.

Super strategy 2.

SALARY SACRIFICE –Sacrifice pre-tax salary into super

Contributing some of your pre-tax salary, wages or a bonus into super will likely help to reduce your tax paid and create long term wealth in super.

How does the strategy work?

With this strategy, known as salary sacrifice, you need to arrange for your employer to contribute some of your pre‑tax salary, wages or bonus directly into your super fund. The amount you contribute will generally be taxed at the concessional rate of 15%¹, not your marginal rate which could be up to 47%². Depending on your circumstances, this strategy could reduce the tax you pay on your salary, wages or bonus by up to 32%.

Super strategy 3.

GOVERNMENT CO-CONTRIBUTION – Top-up your super with help from the Government

If your income is under a certain threshold, then making personal after tax super contributions could enable you to qualify for a Government co‑contribution and take advantage of the low tax rate payable in super on investment earnings.

How does the strategy work?

If you earn¹ less than $53,564 pa (of which at least 10% is from eligible employment or carrying on a business) and you make personal after-tax super contributions, the Government may also contribute into your super account. This additional super contribution, which is known as a co-contribution, could make a significant difference to the value of your retirement savings over time.

To qualify for a co-contribution, you will need to meet a range of conditions, but as a general rule:

  • the maximum co-contribution of $500 is available if you contribute $1,000 and earn $38,564 or less
  • a reduced amount may be received if you contribute less than $1,000 and/or earn between $38,564 and $53,564, and
  • you will not be eligible for a co-contribution if you earn $53,564 or more.

Super strategy 4.

SPOUSE REBATE – Boost your spouse’s super and reduce your tax

Making an after-tax contribution into your spouse’s super could benefit you both – by increasing your spouse’s super and potentially reducing your tax.

How does the strategy work?

If you make an after-tax contribution into your spouse’s super account and they earn less than $40,000 pa, you may be eligible for a tax offset of up to $540. This strategy could be a great way to grow your super as a couple. Not only could you boost your spouse’s super, the tax offset could help reduce your income tax.

To qualify for the full offset of $540 in 2019/20, you need to contribute $3,000 or more into your spouse’s super and your spouse must earn¹ $37,000 pa or less. A lower tax offset may be available if you contribute less than $3,000 or your spouse earns more than $37,000 pa but less than $40,000 pa.


To find out other key considerations and whether you could benefit from the above strategies please call VJC to discuss


¹ Individuals with income above $250,000 in 2019/20 will pay an additional 15% tax on personal deductible and other concessional super contributions. ² Includes Medicare Levy

Important information and disclaimer: This information and any advice provided is of a general nature only. It does not take into account your objectives, financial situation or needs. Please seek personal advice before making a decision about a financial product. Information in this document is current as at 1 March 2020. While care has been taken in its preparation, no liability is accepted by VJC P/L, VJC Wealth Management P/L or its related entities, agents or employees for any loss arising from reliance on this document. Any opinions expressed constitute our views as at 1 March 2020. Any tax information provided is a guide only. It is not a substitute for specialised tax advice.

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.