5 strategies to boost your super while potentially saving on tax.

Here are five smart strategies from LA Wealth to consider before the end of the financial year. 

  1. Add to your super – and claim a tax reduction.

If you contribute some of your after-tax income or savings into super, you may be eligible to claim a tax deduction. This means you’ll reduce your taxable income for this financial year – and potentially pay less tax. And at the same time, you’ll be boosting your super balance. 

  1. Get more from your salary or a bonus

If you’re an employee, you may be able to arrange for your employer to direct some of your pre-tax salary or a bonus into your super as a ‘salary sacrifice’ contribution. Again, you’ll potentially pay less tax on this money than if you received it as take-home pay. 

  1. Convert your savings into super savings

Another way to invest more in your super is by making a personal non-concessional contribution from your after-tax income or savings. Although these contributions don’t reduce your taxable income for the year, you can still benefit from the low tax rate of up to 15% that’s paid in super on investment earnings. This tax rate may be lower than what you’d pay if you held the money in other investments outside super. 

  1. Get a super top up from the government

If you earn less than $56,113 in the 2021/22 financial year, and at least 10% is from your job or a business, you may want to consider making an after-tax super contribution. If you do, the Government may make a ‘co-contribution’ of up to $500 into your super account. 

  1. Boost your spouses super and reduce your tax.

If your spouse is not working or earns a low income, you may want to consider making an after-tax contribution into their super account. This strategy could potentially benefit you both: your spouse’s super account gets a boost and you may qualify for a tax offset of up to $540.