It is often worth considering making a non-concessional contribution (NCC) i.e., non-tax-deductible payment to super up to the non-concessional contributions cap (NCCC). Currently, the NCCC is $100,000 p.a. unless you qualify for the brought-forward rule - read the details on the ATO website, just click here.

Why make NCC if you cannot get a tax deduction?  

Here are a few possible reasons why it may be beneficial for you:

1. Super balance: Boosting superannuation balances to accelerate retirement savings.
2. Asset protection: Superannuation is the safest investment so for many business owners and entrepreneurs, this is a great safety net.
3. Tax-free receipt into super: So, the bad news is you do not get a deduction when contributing, however, the good news is the superannuation fund receives the NCC tax-free.
4. 15% tax rate: During the accumulation phase i.e., whilst contributing to superannuation during your working life the effective tax rate on income earned on any super investments is only 15%. Even better this goes to 0% in retirement, subject to meeting certain requirements.

Disclaimer: This information is general in nature. So, before acting on this or any other information, it is important to seek professional advice related directly to you and your circumstances.  Should you require our assistance, contact your Primarius Team leader, or email us at info@primarius.net.au