If you are 55 and still working there are some positive tax advantages that may be available to you today. Recent changes to superannuation legislation allow you to boost your retirement savings or increase your income right now. You are eligible to receive a “Transition to Retirement” pension, up to 10% of you Super balance. This income receives a tax credit of 15% and will be taxed at your marginal tax rate, minimising your current tax liability. This will free up income to really bump up your salary sacrificing strategy.
If you are an Australian, over 60 and still working your “Transition to Retirement” pension is tax-free. Well technically, it is taxed at 15%, however you still get the tax credit of 15%, making your “Transition to Retirement” pension totally tax free after the age of 60, and you can keep working and contributing to super, right up to age 75, if you choose to stay at work.
Now is the perfect time to review your superannuation and put some thought into developing and implementing a
retirement plan. The first step is to review your current position. Check your statements to ensure your employer is making all required contributions and that they are being deposited into the correct fund. It’s never too early to plan for your future.
Please confirm all of your plans with your accountant, our articles are no substitute for property financial advice and should not be relied upon as tax laws can change rapidly.