Do you know that you don’t have to rely on your employer to pay your super? Yes that is correct! You can add to your super contribution directly. Not only that, what you add from your pocket can be tax deductible.
Before 1st of July 2017 you had to be self employed to be able to claim a tax deduction for personal contributions but not any more. You can add up to $25,000 in your super annually as ‘before-tax’ contributions. These are typically taxed at 15% which is most likely going to be way less than your personal tax rate.
It is important to note that before-tax super contributions are limited to $25,000 and this includes contributions made by your employer. So if your employer has contributed $22,000 in a financial year then you can add up to $3000 in personal contributions for that financial year.
How it works?
It is easier than you think. Usually your super fund will provide you with a BPAY number. You can simply add to your contributions using this BPAY number as you are paying a bill from your everyday bank account. But please make sure that you complete this a few days before 30th of Junne. This way you will ensure that the money reaches your nominated fund before the end of financial year.
The next thing is to tell your super fund that you want to claim a deduction before you lodge your personal tax return. This lets your super fund know that 15% of your contribution needs to be paid to the Tax Office. And that’s it! you are all done in increasing your super while saving on your tax as well.
Still feels complicated? Simply contact UBS Accountants Riverwood on 02 9534 8744 and our friendly team will be able to help you further. You can also contact us by filling the form on our contact us page or via Facebook.
So in short, you can increase your super contribution directly without relying on your employer and this can be tax deductible. It’s easy and UBS is here to help.