Concessional Contributions: Utilise super to reduce tax

TL;DR

Learn about maximizing your superannuation contributions to reduce taxes and increase savings.

Transcript

g'day and welcome to this week's video my name's robert goudie from consortium Private Wealth and this week we're gonna have a look at a number of issues in a series of very quick videos to just consider the end of financial year planning and what we can do over superannuation to help reduce our tax and obviously maximize the amount of money we get... Read More

Key Insights

• 🚕 Concessional contributions of up to $25,000 per year offer significant tax savings compared to regular income tax rates.
• 👲 Employers' contributions and salary sacrifice amounts are included in the concessional contribution cap.
• 🍹 Individuals can make lump-sum tax-deductible contributions to superannuation, reducing their taxable income.
• ❤️‍🩹 It is important to plan and implement these strategies well before the end of the financial year to ensure contributions are made on time.
• 🤳 Self-employed individuals also have the opportunity to make tax-deductible contributions to superannuation.
• 🚕 Superannuation contributions provide a tax-efficient way to maximize savings and reduce overall tax liability.
• 🎮 The video suggests exploring non-concessional contributions and government contributions in future content.

Questions & Answers

Q: What are concessional contributions and how can they help reduce taxes?

Concessional contributions are contributions made into superannuation, taxed at a maximum rate of 15%. They include employer contributions and salary sacrifices, helping individuals reduce their taxable income and save on taxes.

Q: Can self-employed individuals make lump-sum tax-deductible contributions?

Yes, self-employed individuals can make lump-sum tax-deductible contributions to superannuation. They can contribute cash up to the annual limit of $25,000 and claim it as a tax deduction, reducing their overall tax liability.

Q: Is it too late to start a salary sacrifice arrangement towards the end of the financial year?

Starting a salary sacrifice arrangement right before the end of the financial year may not yield significant results in reducing taxable income. It is recommended to implement these strategies well in advance to ensure the money is in the superannuation fund by June 30th.

Q: Are there any limits on the amount of cash that can be contributed as a personal lump sum?

Individuals can contribute up to $25,000 as a personal lump sum towards superannuation. This can be cash that is not necessarily income earned, and it can be claimed as a tax deduction by submitting an intent to claim form to the superannuation fund.

Summary & Key Takeaways

• Individuals can make concessional contributions of up to $25,000 per year into superannuation, taxed at a maximum rate of 15%.

• Concessional contributions include employer contributions and salary sacrifice amounts.

• In addition to regular contributions, individuals can make lump-sum tax-deductible contributions towards the end of the financial year.