A re-contribution strategy can be used to help convert part of your superannuation from a taxable

A re-contribution strategy can be used to help convert part of your superannuation from a taxable component into a tax-free component.

The strategy involves withdrawing money from superannuation and then contributing it back as a non-concessional contribution.

The key part of this strategy is ensuring the contribution remains non-concessional. If you claim a tax deduction on the contribution, it may be treated as a concessional contribution, which can increase the taxable component instead.

Understanding how different types of super contributions are classified is important when planning how your superannuation may be structured in the future.

A carefully planned re-contribution strategy may help create a more tax-effective outcome for your beneficiaries.

General advice only.

Amy Lehmann is an Authorised Representative (No. 1292710) of Consortium Private Wealth Pty Ltd (AFS Licence 495401).