Did you know there’s another way you could potentially reduce your taxable income?
If you’re eligible, not only could you salary package your default and additional superannuation contributions, you could also potentially decrease your taxable income while growing your nest egg at the same time!
Tell me more!
Typically, eligible Queensland Government employees have their default superannuation contribution set at 5% of their salary, whilst employer paid contributions are set at 12.75%. These numbers differ for Queensland Police staff; refer to the Superannuation Information Booklet for more information.
With salary packaging, that default 5% (or other selected contribution percentage) could be deducted from your salary before tax is applied – meaning that you could potentially pay less income tax! And if you’re eligible and wishing to further increase your retirement fund, you can choose to make super contributions in addition to your default contribution amount. When your salary package additional contributions, your super is taxed at a ‘concessional’ (before-tax) rate of 15 per cent, which is lower than the marginal tax rate for most people.
And as an uncapped benefit, most people are able to package voluntary super contributions up to $27,500 each year (inclusive of your employer’s contributions of up to 12.75%) before excess contributions tax becomes payable.
Ready to build that nest?
Call RemServ on 1300 30 40 10 for more information.