Superannuation & 2024 Tax

If you want to claim a tax deduction for an end of year super payment, most super funds advise making the payments no later than 23rd June 2024, with some asking it be done by the 19th June 2024. 

This is because the payment must be made and processed by the super fund by 30th June 2024 and this ensures that you allow time for bank transfers and for the super fund to put the funds into your account.

For businesses using super clearing houses, this may mean processing and paying the super earlier so please contact us for advice and assistance if this is something that you are considering.

For individuals the money must be accepted by your fund before 30th June 2024 however you can make your declaration to your fund or adjust if needed, up to the date you lodge your 2024 tax return.

Salary sacrifice is when you ask your employer to pay some of your salary into your super, on top of the superannuation guarantee minimum percentage payments that your employer is obliged by law to contribute.  These payments are taken from your pre-tax income and are called concessional contributions.  Please note it is important to check how your employer treats salary sacrifice contributions before putting this strategy in place.

How this reduces your tax…. Your salary is sacrificed straight into your super, so it’s taken from your before-tax (gross) pay. This portion of your gross pay is then taxed at 15% in the super fund instead of your marginal tax rate and reduces your taxable income.

Be aware; if you have exceeded the concessional contributions cap and/or earn more than $250,000 then you may be subject to additional taxes. More information is available on the ATO’s website.  Salary sacrificing isn’t something employers are obliged to offer. You’ll need to speak with your employer to check if it’s an option available to you.