With only 10 days left in this financial year, let’s not miss the opportunity to minimize our tax for 2022/23.
One smart tax-saving strategy is making personal deductible super contributions. It not only reduces your tax, but also boosts your retirement savings.
Every dollar you put into your super fund pre-tax (up to the concessional cap) is taxed at a rate lower than your marginal rate, giving you the benefit of tax savings. See details in the image below.
But don’t wait until the last minute! Your super fund needs to RECEIVE your contribution by JUNE 30 for this strategy to work.
Already maxed out your concessional super contributions? Here are a few other tax-saving strategies to consider:
- Make non-concessional contribution for a spouse who earns less than $40,000.
- Realise capital losses by selling investments to offset capital gains but watch out for ‘wash sale’ rules and ensure it’s appropriate to sell that investment.
- Prepay up to 12 months’ interest on income-producing loans.
- Prepay up to a year’s worth of premiums for your income protection insurance.
- And of course, making charitable donations always helps.