The end of the financial year is looming and there are some big changes proposed from the May 2016 budget so now is the time to boost your super balance by making an extra concessional/pre-tax contribution.
With end of financial year approaching, some people look to top up their superannuation balance.
Did you know that you can make a non-concessional (after-tax) contribution to your super of up to $180,000 per financial year?
If you plan to contribute a larger sum then contribute the maximum of $180,000 this financial year and be sure it hits the account of your super fund before June 30 so that it counts.
If you are under 65 then you can use the bring-forward provision which allows you to make non-concessional contributions of up to $540,000 over three financial years.
Be sure not to exceed the contribution cap or you may get hit with excess contributions tax.
Why would we want to contribute to super after-tax? The answer is that any super earnings are un-taxed for those that have reached retirement age and retired. It is a tax-effective place to park your retirement savings.
Visit the ATO web site for more info.
The information provided is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. You should consider whether the information is appropriate to your needs and seek professional advice from a Sydney financial planner before making any investment decisions.
Mark Sinclair is the principal planner at Sinclair Wealth Services