Call to invest tax return in super

Re-investing interest and doubling up with a tax-deductible contribution to a super fund as well as a tax return is a major help toward benefitting from compound interest further down the line, according to the Association of Superannuation Funds of Australia (ASFA).

ASFA has called on consumers to take the opportunity to ‘double up’ with a tax refund and tax-deductible super contribution before the 31 October tax return deadline.

Chief executive Martin Fahy said the benefits of compound interest should be compelling for Australians who should avoid short-term indulgences and focus on superannuation accumulation.

Related News:

ASFA found that if a 35-year-old person put a yearly tax refund of $1,400 into a super account, they would have an extra $65,000 by age 67. Similarly, if a 45- year old were to contribute the same annual amount, they would accumulate an additional $37,000.

The Australian Taxation Office (ATO) expected to distribute around $35 billion in tax returns to around 10 million Australians this financial year. 




Related Content

Government’s superannuation tax proposals open for comment

The Government yesterday released draft superannuation tax legislation and a consultation paper for public consultation.The paper, entitled ‘Superan...more

O’Dwyer attacks ‘siphoning’ of super

The Minister for Revenue and Financial Services, Kelly O’Dwyer, has made a thinly-veiled attack on advertising spending by industry superannuation f...more

Government considers state access to violent criminals’ super

The Government is considering allowing victims of violent crime access the super of perpetrators to claim judgment debts in limited circumstances, acc...more

Author

Comments

Add new comment