Hi All,
If you are a high income earner at the highest marginal tax rate, is there any benefit in contributing to super above your concessional cap?
Also are there any tax benefits of contributing post tax to super?
I am trying to figure out if by chance the tax you pay in the above by transferring to super will be less than the 45% marginal tax rate.
Many thanks
Hi,
how high is the income - just above $190,000 or above $250,000 so you also pay Division 293? Do you have any unused carried forward concessional cap amount?
Also are there any tax benefits of contributing post tax to super? - depends on what is done with this money outside of super and how far away retirement age. Investment income in super is taxed at 15% at the moment, same income in your name will be taxed at maximum.
This type of planning is ideally done together with a licensed financial planner as tax is only one consideration.
Hi,
how high is the income - just above $190,000 or above $250,000 so you also pay Division 293? Do you have any unused carried forward concessional cap amount?
Also are there any tax benefits of contributing post tax to super? - depends on what is done with this money outside of super and how far away retirement age. Investment income in super is taxed at 15% at the moment, same income in your name will be taxed at maximum.
This type of planning is ideally done together with a licensed financial planner as tax is only one consideration.
Following on this good question, assume earning over $250K (so div 293 applies) and five years away from retirement. If I have a choice between putting extra $5K into super each month either pre or post tax, what is the better option please? I’m assuming pre tax is still better because total tax will be 15%+ 15% =0.3 30%, which is better than marginal tax. Is my logic sound? Thanks
Also to add, super balance is above $500K so don’t have unused concessional cap available
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