While many are suffering from the burden of inflation and higher interest rates, there may be one or two of you who have surplus income and are seeking ways to save some of it.
If you are prepared to lock savings away until retirement, a personal deductible contribution may be an ideal and tax effective investment.
We all have a cap of $27,500 per year in concessional contributions. Included in this amount is our Superannuation Guarantee Contributions from an employer. For example, if your salary was $100,000 per annum and SGC was $11,000, you can make a tax-deductible personal contribution up to the difference: $27,500 minus $11,000. If the maximum allowed was contributed, a tax deduction of $16,500 could be claimed in the personal tax return.
There is some documentation required but it is a great option for anyone wishing to boost eventual retirement capital (and receive a tax refund).