Personal super contributions made before 1 July 2019 will be tax deductible as long as the contributor lodges a notice of intent to claim a deduction with their fund and receives a confirmation letter from the fund before lodging their return.
ATO assistant commissioner Graham Whyte believes the end of financial year is the perfect opportunity to deposit money into superannuation due to the tax benefit.
“Checking your balance, consolidating multiple accounts or making an after-tax contribution are easy ways to boost your balance for retirement,” said Mr Whyte.
In an effort to encourage investment for lower-income earners, the government offers the additional carrot of a $500 co-contribution payment, which is 50 per cent of the money deposited by the contributor.
Individuals making between $38,564 and $53,564 are eligible for the co-contribution.
Additional eligibility requires having less than $1.6 million in superannuation and not exceeding the non-concessional contribution cap in the relevant financial year.
“We know most people think of super as something that goes on behind the scenes; however, I’d like to encourage everyone to set aside a bit of time to engage with their super,” said Mr Whyte.
“Taking this time every year is a great practice to ensure the continuous growth of your nest egg”, he said.