Now is the time to chat with your tax agent about contributing more to super

Many Australians don’t realize that they can potentially reduce their overall tax bill by making additional contributions to superannuation and claiming a tax deduction for doing so.

While you can claim up to $30,000 as a concessional tax deduction, including the super guarantee contribution paid by their employer, just how much of this you contribute and claim as a tax deduction depends on your overall tax situation.

Only your tax agent can run the numbers to determine if this is something that might help you lower your overall tax bill and May and June are the ideal months to ask your tax agent for this advice.

If you can’t access your tax agent but have some spare funds that you can contribute to super, you can do so on a non-concessional basis and then when you sit down with your tax agent to complete your tax return, you can discuss these contributions.

At that time, your tax agent can calculate whether it would be a benefit or not to lodge what is called a Notice of Intent document, where you can claim those past non-concessional contributions as a tax deduction.

Confused? Yes, most people are. Just make sure you discuss your tax position with your tax agent before June 30 if you have a relatively high income this financial year and believe you have some spare funds that could reduce your overall tax bill.

It is also worth having a discussion with your tax agent if you are on a reasonable wage and your partner is not working or only working part-time.

It’s possible to make contributions on behalf of your partner and claim a tax deduction for that contribution and it is also possible to make an after-tax contribution to your partner’s super and claim the Federal Government’s co-contribution payment.

While these measures can seem piecemeal, they all add up and push your superannuation balance and that of your partners superannuation balance in the right direction and can make a big difference to your super balance on retirement.

It just requires a little bit of focus, especially in the last ten years of your working life to try to boost your superannuation balances as much as possible and while it might not seem significant, it will help you make the most of your financial situation