Advice On Retirement Savings

At the end of the year fast approaching, it is time to consider the amount that you contribute to a retirement pension. The last federal budget changed "cap contributions" that may affect you.

The ceilings for contributions to super each year, with a surplus of contributions subject to a tax penalty. You can also look for a smsf tax return via https://www.rwkaccountancy.com.au/smsf/.

smsf tax return

Image Source: Google

The maximum amounts depend on your age and the quality of the participation. Australia is struggling to finance its aging population, and changes should save the federal government $ 2.81 billion over the next four years.

The changes will affect your retirement plans and means you may need to reconsider your retirement strategy. Under the foregoing, saving for retirement once your mortgage has been paid was considered sufficient.

It is important to review the amount being contributed to your great sources. It is for the individual to keep track of these amounts because neither employer nor the super fund is responsible for the audit of contributions against the new ceilings.

Super contributions fall into two main categories:

Concessional: Contributions for which a tax deduction is claimed.

  • The employers' pension contributions warranty

  • Employee contributions Sacrifice

  • Personal deductible contributions

Non-concessional: Contributions with money on which you have already paid the tax.

  • Personal contributions of after-tax income

  • Spousal contributions