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Have you made a capital gain this year from selling an investment property or shares, or have there been other significant increases in your income this year, such as redundancy or bonuses?

One effective way to manage your tax liabilities is by considering Concessional Contributions (CC) to your superannuation. By directing funds into your super, you not only build towards your retirement nest egg but also potentially reduce your current tax obligations.

If your super balance is under $500,000, you can also use any unused CC caps dating back to the 2019 financial year.

Did you know that the last year the unused CC cap from 2018-19 can be used will be 2023-24?

AAG in Action – Optimizing Tax Savings and Retirement Planning:

We’re thrilled to share a success story from one of our valued clients, showcasing how strategic financial planning can lead to significant tax savings and bolstered retirement savings.

Our client, a 50-year-old, recently sold their investment property, generating a net capital gain of $50,000 for the year. Through a collaborative effort, we and our client meticulously assessed and calculated this capital gain, ensuring complete financial transparency.

In addition to selling their property, our client earns a robust annual income of $210,000 from full-time employment. We recognised the potential tax implications of their increased income and capital gain and explored avenues to optimise their financial position.

Upon review, we identified that our client had $20,000 of unused contributions spanning from FY 2019 to FY 2023. Leveraging this untapped resource, we advised our client to make a strategic contribution to their superannuation, utilising both the unused contribution cap and this year’s cap.

Thanks to this proactive strategy, our client was able to contribute $24,400 to their super, effectively maximizing their tax-saving potential. The result? A significant personal tax saving of $11,468. While their super contribution is subject to a 15% income tax rate, totalling $3,660, the net tax saving is still impressive at $7,808.

It’s important to note that these funds are securely tucked away in our client’s superannuation until either age 60 and retired or age 65, whichever comes first. This strategic allocation optimises tax savings and ensures a robust retirement nest egg for the future.

For those interested in maximising their retirement savings or exploring tax-effective strategies, we would like to invite you to delve deeper into our comprehensive factsheet. It provides detailed insights and guidance on optimising contributions to superannuation tailored to your unique financial circumstances.

See more on this here:

Therefore, considering this opportunity sooner rather than later could benefit your long-term financial planning.

If you want to explore this further or discuss other tax-effective strategies tailored to your specific circumstances,
please contact us today.

We’re here to help!

AAG AustAsia

AAG AustAsia

AAG is a family-owned group providing Tax planning, management accounting, wealth management, and more. Established in 1979, AAG acts entirely in their clients' best interest by providing financial expertise and upholds a reputation of nurturing long-lasting relationships with clients to assist them with all their personal and business financial issues.