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.
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.
AUTHOR
Hope William-Smith
Recommended for you
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
