How to get the maximum into super and lower your tax

Financial Planner Luke Smith joined 2CC Talking Canberra 1206AM in Money Matters, which aired live on Friday 16 August 2024. Those who work enjoy the contribution their employer makes to super for them, but it surprises many to learn that there are limits on what you can put in. It’s quite strange really, as you think the government would be trying to encourage everyone to save more so they have to pay less in the form of Centrelink Pensions. This episode aims to provide some general financial information about super contribution types and limits. Thank you for joining us live on 2CC or your favourite podcast streaming service with ‘The Strategy Stacker - Luke Talks Money’.
Key topics covered include:
There are two types of super contributions, contributions with deductions and contributions without deductions.
Contributions with tax deductions, there’s a $30,000 limit you can put in (this limit includes the contributions your employer makes for you)
Contributions without tax deductions, there’s a $120,000 limit you can put in.
But you can put in up to 3 years worth of contributions without tax deductions, but know you’re locked out from contributing more for the financial year you do it and the two financial years after it. There are additional rules around it - so know the rules before you make a decision to contribute.
Is there an age limit to making super contributions and getting a tax deduction? Yes, it’s 67 years, but higher if you’ve worked 40 hours in a month.
Is there an age limit to making super contributions and not getting a tax deduction?
How does the downsizer legislation work and what is that limit?
Can I use the limit amounts I haven’t used in the past 5 years and get a tax deduction?
Luke shares his top tips to help you start thinking about how to use the contribution rules given different life situations.
Are you ready to make more of your super or start retirement planning?
There’s some strategic reasons for claiming tax deductions, and there are also some reasons not to. Seek advice if you need help to make the most of your retirement savings. tax and Centrelink position.
Luke as a Financial Planner can help you set up a financial planning strategy to help you achieve your personal financial goals, including investment, super and retirement. Simply make an appointment to confidentially discuss your goals. Call Envision Financial Services on 6260 4749. You can use the contact us form to make an appointment, for a confidential discussion about your situation.
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[@anayafraser8618]

Thanks mate

[@mikmak1900]

great advice again thanks fellas !

[@thestrategystacker]

@@mikmak1900 anytime. I’m glad you keep getting some value from the info.

[@silversun119]

My partner made a concessional contribution into Super last financial year. A large tax return has just been processed. Do we now put the amount the Super fund took out in tax back in concessionally, or non concessionally?

[@thestrategystacker]

@@silversun119 it’s really hard to say because the purpose of the contribution would’ve been to lower your tax. What you do with the refund is up to you. If you want to maximise the capital value of your superfund you would have the option of making a non-concessional contribution because the concessional contribution you have claimed maybe at the annual limit or your maximum allowable deduction so it really depends on your objective as to the use of the funds

[@jameshind6644]

I retire at 66yrs and 8mths in July 2025. Can I use the concessional contributions before I turn 67yrs in Nov 2025 to claim a tax deduction even though I will be over 67yrs when I do my tax return in July 2026.

[@thestrategystacker]

If you make a contribution prior your 67 birthday I do not believe it matters when the return is done it's the time of the contribution.