Super: Get Into it Any Way You Can

By Jason Fittler

We are fast approaching the year 2012. Why is this important? If you are currently over 50 years old you can put up to $100,000 as a deductible contribution into super. After this date, that will drop back to around $50,000. This will restrict the amount of money you can get into super tax effectively after 2012.

I realise that $100,000 is a lot of money and as such may seem out of reach for a lot of people but here are a couple of ideas of how you could do this.

1. Sell your investment property; the property market is at a top right now, cash in on this. The sale will give you a capital gain, to offset this salary sacrifice most of your income in super and live off the cash from the sale. You could also put any surplus cash into your super fund as an undeductible contribution.

2. Sell non income producing assets such as land, and then do the same as above for investment property.

3. If you have funds in term deposits cash this in to live off and salary sacrifice your income to super.

4. Sell out any shares you have and do the same as above for investment property.

5. Salary sacrifice into super as much as you can, tighten the belt a little now as it will pay of big time when you retire.

6. Direct any surplus cash into the super fund as an undeductible contribution.

Keep in mind that at age 55 you will be able to access your super if needed so you are no longer locking your money away for the long term.

Once over the age of 60 and retired, all income, pension payments and capital gains in the super fund are tax free and it doesn’t get better than that.

If you would like us to take a look at what you can do, give us a call on 4771 4577.