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When life gets hectic, superannuation can be the last thing on your mind. With bills, mortgages and any credit cards or loans you may be paying off, you’re hardly thinking about whether your 75-year-old self will be able to afford that Caribbean Cruise.
But contributing to super can be a great way to lower your taxable income, save money for some of the things you’ve always wanted, and enjoy a luxurious retirement on the Sunshine Coast.
You should discuss any potential tax and super strategies with your accountant or financial adviser.
The two types of super contributions.
- Pre-tax contributions or concessional contributions.
- Personal after-tax contributions or non-concessional contributions.
Generally pre-tax contributions are paid by your employer as compulsory employer superannuation contributions. However these contributions might not be enough for a comfortable retirement, so some people make additional pre-tax contributions via salary sacrificing or personal after-tax contributions as well.
To make pre-tax contributions via salary sacrificing, you should talk to your employer to see if this is available to you.
To make an after-tax contribution, you should:
- check the information about the Eligibility to Claim a Deduction on the ATO website to ensure you qualify; and
- then submit a “Notice of intent to claim or vary a deduction for personal super contributions form ” (Notice of Intention to Claim a Deduction form) with your super fund before the end of the financial year. Your super fund will send a written acknowledgment confirming they have received your valid Notice of Intention to Claim a Deduction form. You must receive this acknowledgment from your super fund before you claim a deduction in your tax return.
You’re one step closer to those shiny new golf clubs. But before you make an after-tax contribution, there are a few things to consider.
Keep within your cap.
A note for the over-achiever. If you’re making personal contributions to your super, keep in mind that there are limits on how much you can contribute each year. If you exceed your cap, you will have to pay extra tax.
Demystifying Super.
With ING Living Super, your super doesn’t have to be a big mystery. You can check the your super balance online or over the phone, just like checking the balance of your other ING bank accounts, and keep tabs on just how close you are to that month-long Italian food safari.
The information is current as at publication and does not constitute tax advice. Any advice on this website is general information only and does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. You should discuss any potential tax and super strategies with your accountant or financial adviser.
ING Living Super (which is part of the ING Superannuation Fund ABN 13 355 603 448) is issued by Diversa Trustees Limited ABN 49 006 421 638, AFSL 235153 RSE L0000635 and the issuer of interests in the Fund. ING Living Super is a product issued out of the Fund. ING, a business name of ING Bank (Australia) Limited ABN 24 000 893 292, AFSL 229823, is the Promoter of the Fund.
You should consider the Product Disclosure Statement, Product Guide and Financial Services Guide available at ing.com.au when deciding whether to acquire, or to continue to hold, the product.
Living Super is not available for U.S. Persons (i.e. if you have U.S. residential, postal or fiscal address, phone number, citizenship, Green Card or any U.S. related proxy.
Before interacting with us via our social media platforms, please take a minute to familiarise yourself with our Social Media User Terms https://www.ing.com.au/pdf/Social_Media_User_Terms.pdf.
The information is current as at publication. Any advice on this website does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. Deposit products, savings products, credit card and home loan products are issued by ING, a business name of ING Bank (Australia) Limited ABN 24 000 893 292, AFSL and Australian Credit Licence 229823. ING Living Super (which is part of the ING Superannuation Fund ABN 13 355 603 448) is issued by Diversa Trustees Limited ABN 49 006 421 638, AFSL 235153 RSE L0000635. The insurance cover offered by ING Living Super is provided by Metlife Insurance Limited ABN 75 004 274 882, AFSL 238096. ING Insurance is issued by Auto & General Insurance Company Limited (AGIC) ABN 42 111 586 353 AFSL Licence No 285571 as insurer. It is distributed by Auto & General Services Pty Ltd (AGS) ABN 61 003 617 909 AFSL 241411 and by ING as an Authorised Representative AR 1247634 of AGS. All applications for credit are subject to ING's credit approval criteria, and fees and charges apply. You should consider the relevant Product Disclosure Statement, Terms and Conditions, Fees and Limits Schedule, Financial Services Guide, Key Facts Sheet and Credit Guide available at ing.com.au when deciding whether to acquire, or to continue to hold, a product. Before interacting with us via our social media platforms, please take a minute to familiarise yourself with our Social Media User Terms https://www.ing.com.au/pdf/Social_Media_User_Terms.pdf.