Monthly tax tip:
Do you contribute anything to your superannuation fund? A study by MYOB has found as many as one-third of the self-employed are not making any contributions to their own superannuation.
When you are employed by another person, they must contribute 9.5% on earnings to your superannuation account, but what happens when you are employed by yourself? The self-employed cannot rely on anyone else to make contributions for them, this can now only be made by them. This of course isn’t mandatory but can be a great way to ensure you set yourself up for your own retirement.
Personal superannuation contributions can be claimed as a tax deduction simply by completing a form and sending it to the superannuation company you use. The maximum amount that can be contributed and claimed is currently $25,000 for this financial year. This amount does include any contributions that can also be made by employers so if you are also employed by another person then you will have to ensure your contributions and their contributions will fall under the cap.
So why would you use this tax deduction? Well superannuation is taxed at 15% on earnings which is generally a fair bit less than what the average taxpayer would pay. The other benefit to this tax deduction is the fact that you are saving for your retirement. We recommend discussing your options surrounding retirement savings with your financial advisor. However, if you would like to know more about claiming superannuation contributions then please contact us.
If you would like to schedule a consultation with us then please jump onto our website where you can see our availabilities and book a time that suits you.
- Lodge and pay January 2020 monthly business/instalment activity statement
- Lodge and pay quarter ending 31 December 2019 activity statement
- Lodge and pay tax returns for new registrant self-managed superannuation funds
- Lodge and pay annual GST return for the year ending 30 June 2019
- Lodge and pay quarter ending 31 December 2019 superannuation guarantee charge statement if contributions were not paid on time*
*Superannuation guarantee charge is not tax deductible