Now is a good time to increase your super balance

Subject to legislation being passed, concessional contributions are to be reduced to $25,000 from 1 July 2017, regardless of age. Non-concessional contributions are $180,000 per year at the moment but from 1 July 2017 this will be reduced to $100,000 / year. Non-concessional contributions are amounts you put into super that you are not claiming a tax deduction for. Although you don’t get a tax saving on the amount you put in, the earnings on your superannuation (such as interest) are normally taxed at 15%, instead of your marginal rate, which may be say 47%.

If an individual’s super balance is more than $1.6 million they will no longer be eligible to make non-concessional contributions.

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2017-09-11T09:45:21+00:00