Reason 2,430 to salary sacrifice into super.
With the budget announcement of the top 32.5% tax bracket increasing to $120,000, those earning $120,000 should have an extra $2,430 of take home pay each year.
I can bet that in 12 months’ time, you won’t be able to find an extra $2,430 in your bank account, assuming we can get it out at some stage and spend it! So, why not do something smart with it?
One option for those complaining about not having enough super, is to organise to salary sacrifice $300 per month into their super fund. This is $3,600 a year and reduces your take home pay by $2,430. So, you have the same as what you have now, an extra net $3,060 in super, and save a further net $630 of tax. Nice, hey?!
It’s important to remember however, that super is generally locked in and can’t be accessed until you turn 60 and retire. Also there is a cap of $25,000 each year that includes salary sacrifice contributions, contributions where you want to claim a tax deduction, and employer contributions.
If you’d like to speak with me about what you could do to increase your super, or are keen to book a Discovery Meeting, please send me an email and we can discuss: email@example.com
Bruce Chisholm – Financial Planner
Highview Accounting & Financial
Authorised Representative No. 1235025 of InterPrac Financial Planning Pty Ltd Licence No. 246638. Highview Wealth Solutions Pty Ltd Trading as Highview Accounting & Financial
Bruce has written his article for general information purposes only and it does not constitute personal advice. This information has been prepared without considering any individual’s objectives, financial situation or needs. You should not act solely on the basis of material contained in this article. We recommend that formal advice is sought which considers all your individual objectives and needs.