It’s always been handy to be able to top up your Superannuation each year with additional payments. Even better that you are able to obtain access to some tax deductions. There are a few really important things to keep in mind though:
- Ensure you don’t accidentally pay more than the annual allowable limit for the year. Whilst in some circumstances it may be more (and for that you need to check with your financial planner or tax agent) for the 2020 year the limit for Superannuation paid on a concessional basis is $25,000. If you end up paying too much – it will be taxed heavily and not worth the agony.
- The $25,000 includes your SGC Superannuation paid by your employer on your wages. So be sure to minus that from the $25,000 to double check that you haven’t overstepped the limit by popping in extra Super personally.
- If you plan to pay extra into your Superannuation Fund and get the tax deduction ENSURE you have notified your Superannuation Fund properly. This generally means contacting them to obtain a form called ‘intent to claim a deduction’ and get this to them BEFORE you lodge your tax return.
- In the 2019 tax season around 25,000 people claimed a tax deduction for their superannuation payments – and forgot to inform their superannuation funds. In coming months the ATO will be contacting them. Don’t join that queue!!!