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The End is Nigh

The end of the financial year is rapidly approaching, which is the best time to review tax strategies to save your clients money. Superannuation can be a tax effective tool to achieve tax savings, which can be achieved from the following:

• Superannuation contributions are taxed at a concessional rate of 15 per cent compared to marginal rates, which can be as high as 45 per cent, so reducing a salary by sacrificing into superannuation contributions is an effective way to achieve tax savings. Contributions can also be made on behalf of a spouse.
• Concessional contributions can be made up to $50 000 per person per year or $100 000 per person per year for those over 50 years of age. Alternatively, non-concessional contributions can be made of up to $150 000 per person per year or $450 000 per person per year, using a three-year averaging rule.
• Those self-employed can claim tax deductions for concessional contributions to their superannuation fund of up to $50 000 for those less than 50 years of age or $100 000 for those greater than 50 years of age, to the year 2012.
• Earnings within a superannuation fund are taxed at a maximum of 15%, further reduced by franking credits on dividend income from shares, which is lower than higher marginal tax rates and company tax rates.
• If your client’s assessable income is less than $28 980 the government will match eligible personal superannuation contributions up to $1500. This co-contribution payment is pro-rated up to $58 980. Those who are self employed are also eligible for the government’s co-contribution payment.
• Those over 55 years of age and still working can access their superannuation benefits as a non-commutable income stream, “Transition to Retirement Pension”, which can be no more than of 10% of the member’s account balance at June 30.

Espreon’s Pension Document package includes all calculations, notices, minutes, pension schedules and we offer a discount for additional members on the same pension.