Navigating superannuation can often seem like a complex task, especially for busy entrepreneurs and professionals. At PCR Accounting & Advisory, we’re dedicated to simplifying super contributions for our clients, ensuring a secure and prosperous retirement.
Understanding Your Superannuation
Whether you’re self-employed, run a company, or thinking about exiting your business, understanding how to manage your super is crucial. For those under a company or trust structure, remember that the Super Guarantee Contribution is compulsory, just like for any other employee. For instance, if you are self-employed and pay yourself a wage
under a company or trust, you must pay the compulsory Super Guarantee Contribution, and you can’t use personal tax-deductible contributions to offset that. The rules of superannuation aren’t any different for the directors and owners as for any other employee. It’s essential to incorporate these contributions into your financial planning.
Contributing to Your Super
In the realm of superannuation, there are various ways to contribute. Employer contributions are what your business contributes as an employer. Personal contributions refer to the additional amounts you can contribute via direct debit or BPAY, which may be claimed as a tax deduction. Another strategy is salary sacrifice, where you opt to forego a portion of your salary to add extra to your super fund. Each of these contribution types comes with its own set of tax implications and benefits, playing a pivotal role in enhancing your retirement savings.
Tax Implications: Maximising Your Super
The way your super contributions are taxed plays a big role in your retirement planning. Concessional contributions, which include employer contributions and personal contributions claimed as a tax deduction, are taxed at a favourable rate within the super fund. On the other hand, non-concessional contributions made from your after-tax income are not subject to further tax in the super fund. By understanding and effectively planning around these tax treatments, you can significantly boost your retirement nest egg.
Aligning Your Financial Goals with Tailored Solutions
Each business and individual is unique, and at PCR, we offer more than just standard advice. Our approach involves tailoring our superannuation strategies to align with your specific financial goals, ensuring a more secure future for you. We have expertise in all areas of superannuation, including self-managed super funds (SMSFs), and we offer comprehensive guidance on meeting your super obligations as an employer.
Step Towards a Secure Retirement
The complexities of superannuation shouldn’t deter you from making informed decisions for your future. Whether you’re exploring different types of contributions or looking to set up an SMSF, we’re here to offer expert guidance.
Ready to take control of your superannuation? Contact us today on 03 9847 7516 for expert advice tailored to your needs.
Disclaimer: This blog post is for informational purposes only and should not be considered as financial or legal advice. Consult with a qualified professional for personalised guidance based on your specific circumstances.
Owner of PCR Accounting & Advisory, Peter Marmara-Stewart is a top-tier accountant and financial advisor dedicated to helping clients reach their business goals and achieve financial freedom. Peter is highly regarded for his client-focused approach and entrepreneurial spirit, catering to a diverse range of professionals across a wide scope of industries all across the country. Peter’s expertise can help you plan effectively, set goals, maximise profits and protect your assets. Get in touch today on (03) 9847 7516.