On July 1st, the concessional contribution cap increased by $2,500 to $27,500. For some, you can increase your Salary Sacrificing with extra super payments.
Did you know that you can use funds from your salary before it gets taxed to make extra contributions to your super fund? By doing so you:
- Reduce your taxable income and pay less tax
- Boost your retirement
On top of your normal salary, your employer will be making regular superannuation contributions on your behalf. If you choose to make any extra payments, this can go a long way to making sure you’re ready for retirement.
You can contribute up to $27,500 per annum including your employers’ contributions without incurring penalties.
Some points to keep in mind when considering salary sacrificing your super:
- Don’t leave yourself short to meet your current commitments
- Ensure you don’t go over the annual cap limit of $27,500
- If you have a Defined Benefit Account, salary sacrifice works a little different so contact us to find out more
If you would like to learn more or want to get this set up, please contact us on 1300 49 11 41 and we can show you how.
“Got any questions the FAA Team are here to help!”
John Hehir