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Catch-up contributions could help boost your balance

Catch-up contributions could help boost your balance

15/8/2019

This new 2019/20 financial year, you could have a great opportunity to contribute more money to your super account thanks to the catch-up contribution rule.

The new catch-up contribution rule actually came into effect on 1 July 2018, but 2019/20 is the first financial year you will be able to take advantage of it.

If you did not use your entire before-tax contribution cap to add $25,000 to super in 2018/19, you may be able to access the unused portion this financial year.

For example, if you only contributed $15,000 before-tax in 2018/19, you may be able to contribute up to $35,000 (through salary sacrifice and employer contributions) to super in 2019/20.

This leftover amount will be available for up to five years, so long as you have less than a $500,000 balance in super.

If you would like to know if this new strategy could benefit you, it is best to seek advice. You can book an appointment with the Intrust360° financial advisers by calling 1300 001 360, or by booking an appointment online.