Your superannuation
There are many ways we can assist you to boost your super and achieve the retirement lifestyle you’ve worked hard for.
Make your own super contributions
The contributions your employer is required to make under the Superannuation Guarantee (SG) rules are scheduled to increase from the financial year 2021/2022. Even with this increase, SG contributions alone may not provide you with the super you need to have the comfortable lifestyle you want by the time you retire. Making your own contributions, in addition to the SG, can help you reach your retirement goals.
There are two main ways to make your own contributions:
- Before-tax pay (salary sacrifice)
You can choose to ‘sacrifice’ a percentage of your before-tax pay and have it payed directly into your super fund by your employer in addition to SG contributions. Because the contributions are coming from your pay before it’s taxed, this effectively reduces the amount of pay you’re taxed on. With salary sacrifice, you can have the same amount going into super as you would with an equivalent after-tax contribution, but have more take-home pay. - After-tax pay
This is where you choose to contribute from your pay after it’s been taxed. Depending on your annual income, making after-tax contributions could qualify you for a government co-contribution of up to $500 a year.
Government co-contribution
The government’s co-contribution scheme could mean up to $500 extra a year towards your superannuation nest egg. If you earn under a certain amount in a financial year, all you have to do is make an after-tax contribution and lodge your tax return. The government will then contribute 50c for every $1 of after-tax contributions you make, up to a maximum co-contribution of $500. It’s an easy way to help your super savings grow.
Contribute to your spouse’s super
Some super funds, allow members to make contributions on behalf of their spouse. If the spouse is not working or is a low-income earner, the member may be able to claim a tax rebate of up to $540 a year on spouse contributions they make. That’s an extra amount that you can choose to put towards your super. Making spouse contributions may also offer other tax benefits.
The key is to consolidate your super and you could save! Having all your super in one place could save you money and paperwork and you’ll also find your super easier to keep track of.