Accountant reveals ‘easy’ ATO trick giving Aussies up to $8,287 back
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With tax time just around the corner, Australians are on the lookout for smart ways to boost their refunds and make the most of their money.
One little-known tax strategy has started making waves—helping some Aussies unlock thousands in savings while setting themselves up for retirement.
What seems like a routine end-of-financial-year tip could actually be a powerful financial move, if you know where to look.
With just two months left in the financial year, an Australian accountant shed light on a tax strategy that helped many Aussies unlock large refunds and grow their super at the same time.
Miriam Holme, founder of Fab Tax Accountants, shared that one of the most effective ways her clients boosted their refunds was by making personal superannuation contributions and claiming them as tax deductions.
‘In your myGov, you have an area where it goes through the five years of caps and how much you can contribute,’ she said.
‘You can then look at what you could do in this year because one of those five years is going to be up at the end of this financial year.’
Concessional contributions—which include employer payments—were taxed at just 15 per cent within the super fund.
From 1 July 2024, the concessional contributions cap rose from $27,500 to $30,000 annually.
However, many Australians overlooked a key rule that allowed them to carry forward unused concessional contributions from the past five years.
This strategy gave eligible individuals the ability to contribute up to $132,500 more, depending on their circumstances.
Aussies could only use the carry-forward rule if their total super balance was less than $500,000 as of 30 June in the previous financial year.
Holme urged people to act early, warning that waiting too long could result in their contributions not being processed in time.
‘There are still two months left, so from now you can be having a look,’ she said.
‘Bear in mind a lot of people are going to be trying to do this strategy and if we leave it too late, then super funds aren’t going to process it.’
She explained the real-world benefits of the move using an example from one of her sole trader clients.
The client contributed $42,500 to their super for the 2024 financial year.
This dropped their taxable income by the same amount and saved them $14,662.75 in tax, assuming the 34.5 cents per dollar rate for those earning between $45,000 and $120,000.
Their super fund taxed the amount at 15 per cent, or $6,375.
This left them with a net tax saving of $8,287.75.
Holme said the approach was typically more beneficial for Australians in higher tax brackets.
‘The lowest tax rate now is from $18,201 to $45,000, you’re only paying 18 cents in a dollar so it’s going to get taxed at 15 cents in a dollar in your super fund,’ she said.
‘So you’re saving 3 cents a dollar in tax and not being able to access it until retirement age.’
She noted that this option wasn’t suitable for everyone, especially those who needed access to their money now.
According to UniSuper, the tax break could be helpful for Australians returning to work after a career break, those who received an inheritance or redundancy, or anyone nearing retirement and hoping to boost their super quickly.
Watch the full video below.
Source: Tiktok/miriamholmeaccountant
With tax time fast approaching, would you consider using this strategy to boost your refund and grow your super? Let us know your thoughts in the comments.
One little-known tax strategy has started making waves—helping some Aussies unlock thousands in savings while setting themselves up for retirement.
What seems like a routine end-of-financial-year tip could actually be a powerful financial move, if you know where to look.
With just two months left in the financial year, an Australian accountant shed light on a tax strategy that helped many Aussies unlock large refunds and grow their super at the same time.
Miriam Holme, founder of Fab Tax Accountants, shared that one of the most effective ways her clients boosted their refunds was by making personal superannuation contributions and claiming them as tax deductions.
‘In your myGov, you have an area where it goes through the five years of caps and how much you can contribute,’ she said.
‘You can then look at what you could do in this year because one of those five years is going to be up at the end of this financial year.’
Concessional contributions—which include employer payments—were taxed at just 15 per cent within the super fund.
From 1 July 2024, the concessional contributions cap rose from $27,500 to $30,000 annually.
However, many Australians overlooked a key rule that allowed them to carry forward unused concessional contributions from the past five years.
This strategy gave eligible individuals the ability to contribute up to $132,500 more, depending on their circumstances.
Aussies could only use the carry-forward rule if their total super balance was less than $500,000 as of 30 June in the previous financial year.
Holme urged people to act early, warning that waiting too long could result in their contributions not being processed in time.
‘There are still two months left, so from now you can be having a look,’ she said.
‘Bear in mind a lot of people are going to be trying to do this strategy and if we leave it too late, then super funds aren’t going to process it.’
She explained the real-world benefits of the move using an example from one of her sole trader clients.
The client contributed $42,500 to their super for the 2024 financial year.
This dropped their taxable income by the same amount and saved them $14,662.75 in tax, assuming the 34.5 cents per dollar rate for those earning between $45,000 and $120,000.
Their super fund taxed the amount at 15 per cent, or $6,375.
This left them with a net tax saving of $8,287.75.
Holme said the approach was typically more beneficial for Australians in higher tax brackets.
‘The lowest tax rate now is from $18,201 to $45,000, you’re only paying 18 cents in a dollar so it’s going to get taxed at 15 cents in a dollar in your super fund,’ she said.
‘So you’re saving 3 cents a dollar in tax and not being able to access it until retirement age.’
She noted that this option wasn’t suitable for everyone, especially those who needed access to their money now.
According to UniSuper, the tax break could be helpful for Australians returning to work after a career break, those who received an inheritance or redundancy, or anyone nearing retirement and hoping to boost their super quickly.
Watch the full video below.
Source: Tiktok/miriamholmeaccountant
With tax time fast approaching, would you consider using this strategy to boost your refund and grow your super? Let us know your thoughts in the comments.
