Looking for a boost of up to 50% on your investment this financial year?

If you make a non-concessional contribution to your super fund before June 30, you may be eligible to a co-contribution from the government, providing a boost of up to 50% on your contribution.

For those who are eligible, the Government Co-Contribution scheme is a great way to increase your retirement savings, with the help of the government. The co-contribution can provide you with up to $500.00 of super contributions, if you contribute a qualifying amount of your own.

To qualify you need to:

  1. Pass a work test – to qualify you must make a minimum of 10% of your income for the year from paid employment or conducting a legitimate business. If you are not working, and can’t meet this test then you will not be eligible for the co-contribution. If you are over 65 it is important that you talk to our team before considering a contribution, as the work test required to qualify can become complicated.
  2. Be a low to middle income earner – if you earn up to $34,488 the government will contribute $0.50 per $1.00 of contribution you make up to a $500.00 contribution. The benefit reduces for those that earn over $34,488 until you reach $49,488 at which point you will no longer be eligible.
  3. Make a non-concessional contribution to a complying superannuation fund – not sure whether you comply? Contact our office today and we can explain.

What’s most exciting is that this benefit really does add up in your superannuation fund. For a start you effectively receive a 50% return if you qualify for the full benefit and you contribute the $1,000. These funds then work for you up to your retirement.

The information contained in this article is general by nature, and is not all encompassing, nor does it take your personal circumstances into consideration. If you’d like to chat about your specific circumstances, please contact us, or give the team a call.

Progressive Wealth Solutions is a Corporate Authorised Representative No.472911 of Keystone Partnership Pty Ltd ABN 22 169 650 720, Australian Financial Services License (AFSL) No. 466137.

 

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Deadline EOFY: Small Business Tax Tips

With the end of the 2014/2015 financial year looming around the corner, and the recent budget still in our recent memory, there has been a wide range of changes, benefits, and opportunities that small business owners should be aware of.

The big dip down to 28.5% 

In the 2015 budget, the Treasurer revealed that incorporated small businesses would see the current tax rate fall from 30% to 28.5%. The changing tax rate rolling out in the new financial year opens up a range of opportunities worth being aware of.

In addition, partnerships and sole traders were also given a 5% discount on their tax payable starting at the same time. So everyone carrying on a business has some tax planning to do to ensure they make the most of the changes.

Can you slow down incoming funds?

If you’re in a position to defer receiving taxable income until the start of the new financial year (July 1st), this revenue will be taxed at the lower rates coming into force from July.

Pre-paying to speed up deductions

If you’re prepared and able to cover the cost of upcoming bills pre June 30, you can lock in your deduction at the current, higher rates of tax, which may well have a positive impact on your future, maximising your tax position.

The $20,000 asset write-off

Since budget day, there’s been significant talk about the availability of instant deductions for the purchase of new business assets to the value of $20,000. Keep in mind, before you step out and buy that new TV for the office, there are a range of variables that will impact eligibility for the deduction, so ensure you’re prepared and have the right advice.

The information contained in this article is general by nature, and is not all encompassing, nor does it take your personal circumstances into consideration. If you’d like to chat about your specific circumstances, please contact us, or give the team a call.

Progressive Wealth Solutions is a Corporate Authorised Representative No.472911 of Keystone Partnership Pty Ltd ABN 22 169 650 720, Australian Financial Services License (AFSL) No. 466137.

 

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Should I make a super contribution before EOFY?

The 30th of June comes around every year, it’s that day that many dread, but with a little planning ahead of time, there’s no reason why you can’t go into the new financial year feeling a little more optimistic and excited about your financial future.

Superannuation remains an incredibly tax effective investment when saving for retirement. Fortunately there are a few opportunities you should be aware of in the lead up to June 30.

Maximising contributions

Non-concessional contributions are after-tax super contributions that you can choose to make with your own savings. While you pay tax on the earnings at your marginal tax rate, no further contribution tax is levied when you make this type of contribution. The advantages of non-concessional contributions are that any earnings on your super are taxed at 15% each year, whereas outside of super, they are taxed at your marginal rate. This can result in fantastic savings.

Changes to the age pension

In the last budget, the government proposed changes to the pension asset test, restricting access to the pension for those with larger asset balances (excluding the value of your own home). This small shift may reduce entitlement to the age pension for many future retirees, so its important that you’re maximising your superannuation contributions to ensure you will be well supported in retirement.

The most important part of planning for your future, is taking action early. Whether it’s maximising contributions, understanding the age pension, considering a super split (a strategy for splitting contributions with your spouse), or even learning about the government’s super rebates, we’re here to help. If you have any questions, don’t hesitate to contact the team!

The information contained in this article is general by nature, and is not all encompassing, nor does it take your personal circumstances into consideration. If you’d like to chat about your specific circumstances, please contact us, or give the team a call.

Progressive Wealth Solutions is a Corporate Authorised Representative No.472911 of Keystone Partnership Pty Ltd ABN 22 169 650 720, Australian Financial Services License (AFSL) No. 466137.

 

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