A Financial Goal for 2024: Easy Win/Win – Less Tax and More Savings
The ever-evolving landscape of superannuation can be bewildering for everyone. At Vantage, we take on the crucial responsibility of meticulously examining our clients’ accounts to ensure they don’t miss out on valuable opportunities.
Subject to certain conditions being met, you have the potential to contribute to your superannuation account until you reach the age of 75. The starting point is to assess your Total Superannuation Balance and Total Super Balance. These figures serve as an essential base for evaluating your unique circumstances and identifying potential strategies to boost retirement savings.
1. Total Superannuation Balance
It all begins with keeping a close eye on your Total Superannuation Balance (TSB). TSB represents the total balance held within your superannuation account and plays a pivotal role in determining your eligibility for tax concessions. Your TSB becomes especially relevant when considering the following tax effective strategies:
- Unused pre-tax contribution (Carry Forward Concessional Contributions)
- After tax, private contributions (Non-Concessional Contributions)
- Home sale proceed contributions (Downsizer Contribution)
- Government top-ups (Co-contribution); and
- Spouse contribution top-ups (Tax offsets)
2. Transfer Balance Cap
In July 2017, the introduction of the Transfer Balance Cap (TBC) set a limit on the maximum amount you can transfer into a pension fund. Presently, the transfer balance cap stands at $1.9 million. Once you retire, any amounts exceeding this cap must either stay in an accumulation account or be withdrawn as a lump sum. Earnings generated on any excess amount above the TBC within your retirement account is subject to a 15% tax.
Summary
For most people there are strategies that can be considered every year to boost retirement savings without any cost or risk.
Whether you’re in the process of building your retirement nest egg or already accessing your superannuation funds, the expert Advisers at Vantage are dedicated to providing you with tailored strategies to boost your superannuation holdings and secure a comfortable retirement.
About the Author:
Zac Vinten – Private Client Adviser – Vantage Wealth Management
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