Salary Sacrifice your pay
Salary sacrificing part of your employment income is an effective way of saving tax. The salary sacrificed component of your salary is not counted as assessable income for taxation purposes, which means you won’t be taxed in your individual name on this portion. When the contribution goes into your superannuation fund the contributions are taxed at only 15%. Take for example a person earning $100,000 per year, who decides to salary sacrifice $10,000, they will save $2,400 in tax (based on 2014-15 year income tax rates).
Running a Business?
If you operate a business don’t forget your own superannuation. Making personal concessional contributions (if you are a Sole Trader or Partnership) or employer contributions (if you trade under a Trust or Company structure) can have significant tax savings. This is an area you should be taking to your accountant about to ensure you have an effective tax strategy in place.
Make a Spouse Contribution
A tax offset may apply if you make a superannuation contribution on behalf of your non-working or low-income earning spouse, whether married or de facto. The maximum tax offset available is $540 and applies if your spouse’s assessable income and total reportable fringe benefits amounts is $10,800 or less in the income year.