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Self-employed listen up!

If you are self-employed you may not be paying yourself the compulsory 9.5% employer superannuation guarantee contribution, that you should be… nit, nit, nit! Nonetheless, it’s now up to you to provide for your own retirement.
You can do this by making regular or lump sum contributions. This allows you to take advantage of the tax concessions that are available under Australian superannuation legislation, which include:
  • Concessional contributions and fund earnings being taxed at 15%, rather than your higher marginal tax rate.
  • Claiming a tax deduction for your contributions up to the concessional contribution cap which is currently $25,000 per year.
  • Reducing your capital gains tax (CGT) obligation on the sale of business assets if you meet the eligibility criteria of the Small Business Retirement Exemption.
As my mother's mother's great aunty once said “a penny saved is a penny earned”.
Here's a picture of my mother's mother's great aunty Mary providing this exact advice to this gentleman - Word has it, this gentleman now lives on Bribie Island, retired and financially secure!

Thankyou aunty Mary! 
Work smarter not harder...

You may be eligible to claim a tax deduction on personal contributions you add to your super fund. What is a personal contribution you ask, well, a personal contribution is you “personally” putting some of that cold hard cash from your after-tax paycheck into your super. But, don’t get too excited just yet, there are some T&C’s that apply.
However, let’s not sweat the small stuff, there has to be some upside to doing this, right? Well, if you claim a deduction and it’s successful, your contribution will generally be taxed at the concessional rate of 15%, instead of your marginal tax rate which could be as high as 47%. Again, back to what my mothers, mothers, great aunty once said, which if you haven’t worked it out, it’s more money for you, later on!

How do we do it, Corey? I’m glad you asked!
  • First of all, you need to chip into your super.
  • Then, if you're eligible, we will need to complete a notice of intent to claim a deduction form.
  • Once we complete this form, we will send it to your super fund and wait for an acknowledgment.
  • Then it’s over to the numbers man, the accountant!
Note: You must do this before you lodge your tax return for the relevant year and we need to be aware of your contribution caps as penalties will apply!
Incrementum Wealth Management

If you would like to revisit your Financial Health Check, including assessing your Superannuation, insurance and investment needs, you are invited to meet with a professional adviser from Incrementum Wealth Management. Please feel free to contact us at Support@incWealth.com.au or click the button below for sound advice tailored to your individual needs, goals and objectives.
 
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