Case Study 2: tax benefits and a super boost
Carol, aged 55, is a full-time planning officer for a town council. She has no intention of retiring any time soon. She earns $90,000 per annum, which equates to a take-home income of $66,650. At present, Carol has $300,000 in superannuation.
Carol begins an NCAP on 1 July 2006 and can withdraw an NCAP of between $14,220 (min.) and $26,090 (max.) during the 2006/07 financial year.
Using this strategy, Carol can potentially boost her superannuation by around $70,000 over 10 years.
This means, even if you have no intention of retiring, you may still be able to access the tax advantages of an NCAP. You can also potentially boost your superannuation holdings by salary sacrificing a sizeable portion of your salary. In such instances, the ability to salary sacrifice becomes a possibility as any income sacrificed can be replaced by the NCAP.
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