In the last post I mentioned you can generally claim a tax deduction of up $25,000 for super contributions paid in the year (increasing from 1 July 2021 tax year to $27,500)
However, if you have a self-managed superfund (SMSF), you could potentially get a tax deduction for super paid of up to $52,500 in one year. i.e. using the contribution cap of two years in one year.
This amount is made up of $25,000 cap for the current year and $27,500 for next year. You will need to allocate the second contribution to a holding account in the financials of your SMSF.
This strategy is known as a “Contributions Reserving” strategy.
Be careful with this strategy and be sure to get appropriate advice from a financial planner and your business accountant.
𝐓𝐈𝐏 𝐎𝐅 𝐓𝐇𝐄 𝐃𝐀𝐘: For those who may have a large taxable income this year (large bonus or property sale) and are expecting a lower taxable income next year you should consider a contribution allocation strategy to maximise deductions for the current financial year.
Like any tax advice make sure you get help for your specific situation.
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