Superannuation is essentially a tax-effective method of saving for your retirement. For many of us, it is the largest asset we have, apart from our homes.
With a variety of contribution options, Superannuation is a complex area. It’s important to form a strategy to make the most of the tax concessions, financial incentives and rebates.
Super contribution options
- Employer – 9.25% super guarantee contributions
- Employee – salary sacrifice contributions
- Salary forfeited as contributions to super instead of taking as taxable income
- Employee – voluntary contributions (after tax)
- Could be eligible for government co-contribution payments if other conditions are met
- Self employed – deductible contributions
- Must derive at least 10% of total income from self employed, business activities
- Self employed or not working – after tax (non-deductible) contributions
- Could be eligible for government co-contribution payment if other conditions are met
Spouse – spouse splitting or spouse contributions
Strategy
By forming a strategy, you may take advantage of:
- Transition to Retirement (TTR) rules
- Choice of superannuation
- Self Managed Superannuation Funds (SMSF)
- Salary packaging (also known as salary sacrifice)
- Retirement income streams
How can we help? – You can access a wealth of experience and knowledge in superannuation through a KDM planner. Contact us today.