Offset capital gains tax
There are many good reasons to make additional contributions into your super. Let us give you another one - capital gains tax. If you've sold an asset during the course of the year and you'll be liable for capital gains tax on the profit, you may be surprised to learn that a personal contribution to your super may be able to come to your rescue.
If, for example, you're self-employed and you can claim a deduction for your contributions to your super account, you can use the deduction to offset your capital gains tax liability and reduce the amount of tax you'll pay. You don't even need a capital gains tax liability. Tax-deductible contributions can be used to reduce ordinary personal income that's tax assessable.
As with many of the strategies around super, there are rules and eligibility criteria. Speak to your financial adviser - they'll go through them with you and pick out the elements that will suit your personal circumstances.
The key to your financial future is a series of small, sensible steps. The general advice provided here doesn't take into account your personal objectives, financial situation or needs and because of that, the very first step is to speak to your financial adviser. Your financial adviser can take you through all of these strategies and many more besides. They know your personal financial situation and are perfectly placed to pick out the strategies that are going to work for you, and then help you implement them.
For more information, please read personal super contributions
If you'd like more information, talk to your financial adviser. If you don't have an adviser, we can help you find one.