Financial Tools
  Client Portfolio Access
  New Client Kit
  Enquiry / Seminar Registration
Hot Issues
The little-known rule with huge implications for self-managed super funds
Grappling with the uncertainties of retirement
Change to ATO decision relevant to SMSF in-house assets
Taking a personal perspective on the global super challenge
Some terms defined - Super & Investment
The perils of market-timing and over-confidence
Market Update – 30th September 2014
Hardly a do-it-yourself job
Super insurance: wide coverage, limited understanding
Good financial planning finally has a value: 23% more in retirement
ASIC eyes SMSF loan sign-off
Redesigning retirement incomes policy - from the ground up
Industry terms
Market Update - August 2014
Keeping to super's sole purpose
Taxing times for self-managed super funds
The relationship between SMSFs and their advisers
How family financial planning opened the door to a holistic advice career
Spotlight on your retirement income
Market Update - July 2014
The new 65?
Report reveals 'alarming' super savings stats
Anchors aweigh!
Articles archive
Quarter 3 July - September 2014
Quarter 2 April - June 2014
Quarter 1 January - March 2014
Quarter 4 October - December 2013
Quarter 3 July - September 2013
Quarter 2 April - June 2013
Quarter 1 January - March 2013
Quarter 4 October - December 2012
Quarter 3 July - September 2012
Quarter 2 April - June 2012
Quarter 1 January - March 2012
Quarter 4 October - December 2011
Quarter 3 July - September 2011
Quarter 2 April - June 2011
Quarter 1 January - March 2011
Quarter 4 October - December 2010
Quarter 3 July - September 2010
Quarter 2 April - June 2010
Quarter 1 January - March 2010
Quarter 4 October - December 2009
Quarter 3 July - September 2009
Quarter 2 April - June 2009
Quarter 1 January - March 2009
Quarter 4 October - December 2008
Quarter 3 July - September 2008
Quarter 2 April - June 2008
Quarter 1 January - March 2008
Quarter 4 October - December 2007
Quarter 3 July - September 2007
Quarter 2 April - June 2007
Quarter 1 January - March 2007
Quarter 4 October - December 2006
Quarter 3 July - September 2006
Quarter 2 April - June 2006
Quarter 2 of 2007
Articles
When sacrificing your salary isn't really a sacrifice
Debt - the dark cloud on the New Year's horizon
Secure File Transfer via our website
Register of Complying Superannuation Funds
Investment Markets Data - To 31st May 2007.
Tax cuts can turn super sexy.
Carrying on a business from home?
Choosing your DIY super investment strategy.
Market Update - General - April 2007
Investment Markets Data - To 30th April 2007.
Federal Budget 2007 - 2008
Tax cuts can turn super sexy.
Super opportunities for business owners.
The dangerous divide for our ageing population.
Market Notes - March 2007
Market Update - General - March 2007
Investment Markets Data - To 31st March 2007.
When sacrificing your salary isn't really a sacrifice

Salary sacrificing is a strategy that not only boosts your retirement savings but can also lower the amount of income tax you pay.


Many employers offer salary sacrifice, a strategy where rather than taking all your salary as income you contribute a portion to super. Salary sacrifice contributions usually attract a tax of just 15 per cent, which is about half the average marginal tax rate. Instead of investing money outside super and paying a higher tax rate, you can contribute it to super and have more money to invest for your long-term future.

You will need to make a prior arrangement with your employer before you can salary sacrifice. This means you must have an arrangement in place before performing any work. Ask your employer if you can make salary sacrifice contributions to your super fund. You may be able to contribute one-off payments like your annual bonus using salary sacrifice providing you make arrangements prior to your bonus being awarded.

Currently there are no limits to how much you can contribute to super and claim a tax deduction. However, age-based limits do apply to how much your employer can contribute and claim a tax deduction, which may impact how much you can salary sacrifice. These limits are based on age apply until 30 June this year.

Age

Deduction limit
(2006/07 financial year)

Under 35

$15,260

35 - 49

$42,385

50 to 70

$105,113

These limits will cease to apply from July 1 and caps will be introduced limiting the amount you can contribute to super and claim a tax deduction. Both your compulsory employer contributions and any salary sacrifice contributions you make will count towards this limit. From 1 July, People aged under 50 (including the self employed) can claim a full tax deduction of up to $50,000 for contributions made to super. For those over 50, this limit increases to $100,000 a year until 2012.

 

Smart Investing
By Robin Bowerman
11th May 2007

Principal & Head of Retail, Vanguard Investments Australia

 



24th-June-2007

  Financial Advisor | Financial Planner | Financial Adviser | Financial Planning | Financial Planner Sydney