Question:

I am 29, earning $140,000 before tax, and also have 9% super contributed on top of my salary. I am being "encouraged" to switch to working as a contractor soon, earning $200,000 before tax, so that my employer can reduce payroll tax. 

We have an investment property renting at  $590 a week, and we pay $415 in rent a week. Once I become a contractor, should I continue to contribute to super or use all of my income to offset my home loan?

 

Answer:

Make sure you talk to your accountant before becoming a contractor because the tax office is cracking down on what they see as artificial arrangements.

In view of your young age I would rather see you building assets outside the superannuation system – your super is inaccessible for more than 30 years and many changes to the rules are a certainty during that time.