Did you know if you have a super balance of less than $500,000 you may be entitled to make a larger tax deductible super contribution than you think?
From 1 July 2018, if you have not made the most of super contributions, you may be eligible to catch up this year.
If this applies, the government has allowed you to “catch up” if your superannuation balance was less than $500,000 at 1 July.
For example – you might have taken a career break in FY2020 and not made any contributions in that year. That means you may be eligible to make a contribution of $25,000 from that year (and claim a tax deduction in this year), on top of the allowable $27,500 in this year (provided you have less than $500,000 in your account as of 1 July 2021).
You also no longer need to be self employed to make these types of contributions and claim a deduction. Employees are eligible to as well.
This can be a great way to kick start your super in 2022!
If you think you may be eligible, speaking with an advisor about how this process works is a great start.
James Walker is an Executive Advisor at Viridian Advisory.
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https://www.ato.gov.au/individuals/super/in-detail/growing-your-super/super-contributions—too-much-can-mean-extra-tax/?page=6