Could Your Savings Be Invested Into Super Rather Than A Holiday Trip?
Opting out of the annual end-of-year holiday trip? The holiday season can be an expensive time of the year, but if you’re thinking about skipping the overseas holiday trip and found yourself with some unexpected extra savings.
By investing those savings into your superannuation fund through concessional contributions, you could put the money to good use (and compound it into even better savings!).
The general concessional contributions cap limit is currently $27,500. If you have unused concessional contributions from the previous year, you could add that total amount to the $27,500.
The unused concessional cap is available if the following criteria are met:
- The total super balance at the end of 30 June of the previous financial year is less than $500,000; and
- Concessional contributions are made in a financial year that exceed the general concessional contributions cap
- If concessional contributions of less than the general cap are made in a financial year, the contributions will count towards the current year contribution cap, and the carry forward unused cap will not be affected.
While a trip away may bring short-term enjoyment, investing in your superannuation through concessional contributions could produce long-term benefits. Plus, you can use your carry-forward contribution caps from previous years in addition to the limit (if eligible).
Speak with your provider about contributions today to get started.
