One of the best features about superannuation is that you pay less tax on both the money you put into your super and the earnings it generates.
Super is typically taxed at when:
The superannuation taxation laws in Australia can be complicated, and change regularly. The system is intended to have low tax rates (a maximum of 15%) for contributions you and your employer make, as well as any investment earnings. And, generally, you will be able to withdraw funds tax-free in retirement (once you’ve reached your preservation age and meet a condition of release).
Once you start accessing your super, you should be in a tax-free environment (taxed at 0%). This means you keep more of your money on an after-tax basis compared to if you’ve been investing in some other structure.
Prior to accessing your super, there are a number of ways you can use super to reduce your income tax.
At Aspiri, we have 25 plus years’ experience in financial advice and are up to date with superannuation legislation, trends and strategies. We’ll advise you on the structure of your superannuation, to maximise your income and minimise your tax, setting up so you can access the amount you want to fund your lifestyle.
One way to increase your super and minimise your tax is to make salary sacrifice contributions and claim a tax deduction for any personal contributions you make to your super fund. You may also be able to add to your super by way of government co-contributions or contributions from your spouse.
The maximum amount you may contribute to your super every year is known as the contribution cap. If you exceed the limit, you may be charged extra taxes.
The cap amount as well as any additional tax owing depend on whether the contributions are concessional (before tax) or non-concessional (after tax).
You can contribute more than the set limits, but you should be aware that any extra money may incur additional tax.
We’ll look at how to best utilise your super contributions in a way that minimises your tax, depending on your goals and your individual circumstances.
Self Managed Super Funds (SMSF) are one of the best structures to minimise tax on your super. With SMSF, you have more control over your assets and investment decisions, which might help you manage the tax position of the fund.
It is important for each individual to consider their own financial situation before committing to any decisions as a SMSF may not be suitable for you.
“We have been with Aspiri for many years and found that the advice provided has been very professional and in a courteous manner, with sound investment advice around our portfolio.”
C & L Clapper
“Since our first meeting with Aspiri more than 10 years ago, our confidence in the Aspiri team has never wavered. The expertise and the personalised advice and interaction they provide us, we feel very sure. Their advice has allowed us the luxury to pursue and now enjoy a lifestyle of our choosing. Thank you Aspiri team, you are all much appreciated.”
I & G Vayro
“I’ve been with Aspiri for 10 years after having my own self -managed Super Fund since 1988 . Since I retired 5 years ago I have drawn an annual income of over $100k and the balance of my account is what it was on retirement. They must be doing something right.”
“The Aspiri team have been looking after my financial security for eleven years. They have been extremely supportive, helping me plan my future. As a self-funded retiree, their advice gives me the reassurance that I can go onto my latter years secure in the knowledge that my finances will allow me an ongoing comfortable retirement. “
“The team at Aspiri have been informative on a regular basis and in an accessible way that allows us as busy professionals with little knowledge of the financial world to feel empowered and confident that our wealth is being well cared for.”
J & J Conn
“In the time I have been with Aspiri, I have found them to be very good at what they do – they are very efficient and reliable, able to explain financial matters in a clear and simple way as well as having empathy and understanding for my individual circumstance.”
“I have been a client of the Aspiri team for over 10 years. I can thoroughly recommend the team at Aspiri for providing financial advice for me and my family and for always providing outstanding service with passion and enthusiasm!”
“Several years ago we chose Aspiri, to manage our investments. The team are extremely personable, informed and easily contactable. They adjust portfolios in a timely way, based upon shifts in global markets and the client’s goals. We recommend the client-focused Aspiri team, with confidence.”
J & E Clancy
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