Do you ever wonder what your retirement will look like?
Many small business owners prioritise investing back into our businesses, rather than topping up our superannuation fund … but some recent changes to ‘catch up contributions’ to super can make a massive difference to your retirement fund.
Ian Wright, owner of WrightAdams Advisory, a boutique financial planning form located in our Frenchs Forest space, was telling me all about these new changes, so I asked him to outline them for you too. Here’s what he said:
“Small business owners are generally aware that you can contribute up to $25,000 into superannuation as a concessional contribution and claim a tax deduction. What many are not aware of is that you can also ‘catch up’ a previous years missed opportunity (provided your super balance is under $500,000) at the same time. You can go back as far as the 2019 FY. As a business owner this creates a great opportunity to give your retired self money and reduce your tax. As an individual or employee the same rules apply.
Here’s a simple example:
If you contributed only $10,000 per annum for 2019 and 2020 (likely to just be your super guarantee which is included) you could potentially contribute up to $55,000 before 30 June 2021. This contribution could be used to offset your company or personal income or any capital gain by that amount.
If anyone would like further clarification on this then feel free to contact us any time.”
You can contact Ian on 02 9256 8703 or email him: firstname.lastname@example.org.
It’s important to note that the above is not to be considered personal advice and is general in nature only. Proper advice should be sought by either a suitably qualified financial planner and/or your accountant