My accountant advised me to pay $30k in super to save tax. Anyone this group doing this or considering or ever did?
I would be getting second opinions. Make investments and associated decisions purely based on their Tax benefits should be highly questioned and evaluated.
Does your accountant walk the talk and have full runs on the board and associated legal accreditations to give comprehensive investment advice?
George Grimekis CPA ,
Accountant at Alpha Omega Accounting & Business Solutions
You can make a concessional (tax deductible) contribution to super to save tax. How much you save depends on your income.
Say you have a taxable income of $100,000 you can contribute the $30,000 to super and claim a deduction, thus reducing your taxable income to $70,000. At $70,000 you pay tax at the marginal rate of 32.5% as compared to 37% if your income was to remain at $100,000.
Keep in mind that the $30,000 you contribute to super will be taxed at 15%.
Also, $30,000 is the cap limit (if you are under 50) so if you have contributed to super through the year then you will be taxed at your marginal rate for the excess.
I hope your accountant has illustrated and explained the tax savings to you.