SASS Wise

[00:00:00] For most people, the only time of year we think about our tax, how much we pay and how much we can save is when completing a tax return. But spending a little time now to learn about some opportunities could make a big difference in your tax outcomes. Super is one of the most tax effective ways to invest. While you're working and contributing into super, you pay only 15% tax on that investment. When you're withdrawing your super, for most there's no tax. Now some tax topics can be complex. So remember it's always good to talk to a financial expert for help and guidance on what you could do. Let's jump right in with what you can do using your super. Before the end of financial year on June 30.

[00:00:45] We may be able to put money into super and claim a tax deduction. If you have spare cash to put into super, here's what you need to know. For most people, these contributions are taxed at only 15% instead of your usual tax rate, which could be as high as 47%. The cap for this financial year is $27,500. It's set to increase on July 1. If you will use all of this year's cap, there's also the Carry Forward rule, which allows you to make use of any unused concessional contributions from previous financial years. The last chance to take advantage of any unused contributions from the 2018-19 financial year is before 30 June this year.

[00:01:30] You could claim a tax offset of up to $540 when helping boost your partner's super. To receive the maximum offset, they need to be earning less than $37,000, and you need to put in $3,000 into their super. You can put in less, but the offset will be less.

With all the contributions we've discussed, there are rules and limits. You can check on our website just to make sure you're eligible.

[00:02:20] Okay, let's talk about an exciting change in the new financial year. The tax cuts we've heard about recently start on the 1st of July, increasing the take home pay for most Australians. If you're in a position to do so, you could consider putting some into super, and here's why and how it could work. These tax cuts are just like getting a pay rise. You could put some of it into super via salary sacrifice and keep some to boost your income. The earlier you start, the bigger the benefit. If you want to explore more, go to our website for useful resources that can help you see the positive impact extra contributions make to your financial future. Whether retirement is in 1 or 10 years, the new tax year is a good time to think about what retirement might look like. These are just some of the strategies that could be used. Seeing a financial planner ensures you aren't missing out on any smart ways to make the most of your money. They can also help you feel confident and optimistic about your future.