Superannuation is an investment tool to assist you fund your future retirement.
As an employee, you are entitled to have a portion of your salary package paid into a superannuation fund, where it will be invested for your future. You can also choose to make voluntary contributions, which may be tax deductible.
Concessional contributions include compulsory employer super guarantee of 9.5%, salary sacrifice contributions and personal contributions which you are allowed as an income tax deduction. Concessional contributions are taxed within the superannuation fund at a rate of 15%, which is lower than most income tax rates. The yearly cap for concessional contributions for individual at any age is $25,000. If more than this limit is contributed, you may be assessed to pay an additional tax.
Non-concessional contributions into superannuation funds do not form a part of the superannuation funds assessable income, however you are also unable to include a tax deduction for these contributions in your personal return. The annual cap for non-concessional contributions is $100,000. If you are under the age of 65 you can invoke the bring forward rule which allows you to contribute up to $300,000 at a time, depending on the balance of your superannuation. Non-concessional contributions could be useful to get lump sums into super.
Our team can provide advice around complex superannuation opportunities and issues, including:
- Superannuation contribution strategies
- Accessing the small business CGT retirement exemptions
- Downsizing superannuation contributions when selling your main residence
- Spouse super contributions and super contributions splitting
- Government co-contributions for low income earners
- First home super saver scheme
- Strategies for transitioning to retirement
- Division 293 Tax when personal income is over $250,000
- Meeting the release conditions for accessing superannuation
Why choose TF Partners?
TF Partners is constantly evolving and developing alongside our clients, to provide a holistic range of services including Accounting, Business Advisory, Wealth Management and Finance. With our depth of expertise, we provide our breadth of services to a diverse range of clients across an array of industry sectors.