๐‘๐ž๐๐ฎ๐œ๐ž ๐ฒ๐จ๐ฎ๐ซ ๐ญ๐š๐ฑ ๐š๐ง๐ ๐›๐จ๐จ๐ฌ๐ญ ๐ฒ๐จ๐ฎ๐ซ ๐ฌ๐ฎ๐ฉ๐ž๐ซ - Finness Advisory

๐‘๐ž๐๐ฎ๐œ๐ž ๐ฒ๐จ๐ฎ๐ซ ๐ญ๐š๐ฑ ๐š๐ง๐ ๐›๐จ๐จ๐ฌ๐ญ ๐ฒ๐จ๐ฎ๐ซ ๐ฌ๐ฎ๐ฉ๐ž๐ซ

Superannuation contributions are a no-brainer at this time of year. You can make a lump sum contribution to your super thatโ€™s tax deductible (up to a maximum of $25,000).

This is ideal if youโ€™re looking to lower your taxable income and especially helpful if youโ€™ve got a capital gains tax event this financial year.

Example:
Sarah has a taxable income from her business of $175,000. She also sold some cryptocurrency during the year and made a taxable gain of $30,000. The gain has brought Sarahโ€™s taxable income into the top rate of tax (47%). Yikes!

If Sarah made a lump sum contribution into her superfund of $25,000 before 30 June, she would save $11,750 in tax.

Granted her superfund will have to pay $3,750 tax on the contribution going into the fund but she is still $8,000 better off in tax! Plus the money is now in a low tax environment.

๐“๐ˆ๐ ๐Ž๐… ๐“๐‡๐„ ๐ƒ๐€๐˜: If you have a bumper year and find yourself paying the top rate of tax, it might be a great time to consider making a super contribution and let the tax man boost your retirement funds.

Just be careful as the maximum cap of $25,000 includes super that your employer may have also paid for you.

Note: the superannuation cap is increasing from $25,000 to $27,500 next financial year.

Iโ€™ll let you in on a not so well known strategy in tomorrowโ€™s post, where you could potentially use the maximum super cap of two years in one year.

Like any tax advice make sure you get help for your specific situation.

If you are a business owner and you are overwhelmed this tax time, Iโ€™ve got your back!

Simply provide a few details below and Iโ€™ll schedule in a FREE 15 minute appointment to discuss your situation.

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