With the end of the financial year, a financial consulting firm is fast approaching Morton Group advised some of their health clients to make additional contributions to their super that could potentially help them retire earlier.
Cameron Dixon, managing director of The Moreton Group, said that contributing to the super is a good way to reduce taxable income and in most cases grow a retirement egg. “Some healthcare professionals can increase their tax by making a transfer to their superfund from their savings until the end of the fiscal year without taxes,” he said.
Paying pensions can take several months of working life. “For example, a recent 55-year-old nurse with $ 250,000 currently in their super-account had a superbalance forecast of $ 539,964 for 65 if they didn’t make additional contributions,” Dixon said.
“Estimates also illustrated that if this nurse contributed $ 1,000 before EOFY each year until they retired, their projections indicated that they could retire with $ 553,051, giving more financial freedom in retirement or even the opportunity to retire months earlier than they originally planned.
“The benefits of a super contribution can be realized long before retirement, because contributions are taxed differently than your normal income, and our nurse is projected to receive a tax refund of $ 3,866 over a 10-year contribution period.” He said.
The most valuable thing anyone can spend their tax return on is their future, Dixon said, adding that personalized advice can help get a clearer idea of retirement needs.
Dixon offered five tips for healthcare professionals to make their EOFY “super”:
- Reduce taxable income by donating a salary to super:
- Ask your employer if they offer to donate wages.
- Tell your employer / team accounts how much you want to contribute to each salary.
- Make contributions to the Super by June 30 and demand a tax refund:
- Get a top-up from the government:
- If you are eligible, you will receive up to 50 cents for every extra dollar you deposit into your super account, and do not require a tax deduction, up to a maximum of $ 500 through a government co-payment scheme.
- Make a contribution to your super by June 30th.
- Make a courageous contribution:
- If you are eligible, you can contribute to your spouse’s supermarkets and claim a tax credit of up to $ 540.
- Fill in the details of the super-contributions made on behalf of your spouse in the tax return.
- File a tax return.
- Invest your tax return in super:
- Check if you are right.
- After receiving the tax return, contribute to your super.
- Fill in the notice of intent to claim or change the form of deduction of personal contributions (NAT 71121) to your superfund and receive confirmation.
- Claim this contribution next year.