MAXIMISE YOUR SUPER
Maximise your super, minimise the stress
Like most members, the compulsory 9% employer contribution is likely to provide you with only basic benefits at retirement. Many people are surprised to find out just how much they actually need to fund the retirement lifestyle that they would like.
Therefore, as super will be a key source of your retirement funds, why not make sure you have enough super to retire comfortably. Thankfully, there are a number of options to help you.
Super Co-contribution
The Government can contribute $1,000 towards your super
If you earn under $61,920 in the 2009/2010 financial year and you make a personal (after tax) super contribution, you could be eligible for the co-contribution. If you earn under $31,920, for every dollar you contribute to super from your after tax salary, the Government will make a matching contribution of $1.00 up to a maximum of $1000. As your income increases above $31,920 the amount the Government contributes will reduce by 3.33 cents for every dollar you earn up to $61,920.
Download the Fact Sheet here
Add to your super and save tax through salary sacrifice
A sensible tax effective way of putting money into super is through salary sacrificing. This is an arrangement whereby your employer pays part of your pre-tax salary into your super fund rather than actual wages. This lowers your taxable income as more of your salary is being paid into super instead of being taxed as income.
Jenny is 40 years old and her salary package is $60,000 a year. Jenny is considering making a $10,000 salary sacrifice into Super. The example below shows that Jenny pays less in income tax and although her take home pay is reduced, her combined value of pay and her super both increase.
Download the Fact Sheet here
Consolidate your funds and let your money work for you
If you have more than one Super fund it may be in your best interest to consolidate. You’re more likely to pay less money in fees, while you have more money in your fund working for you.
Sharing your Super with your spouse
Split your super contributions with your spouse and you may reduce your tax if one or both of you decide to retire before you turn 60.
After 30 June each year, you can nominate an amount of the contributions that were paid into your superannuation fund during the previous financial year (1 July to 30 June), to be transferred to a superannuation account for your spouse.
You can split contributions with your partner if you are married, or in a de facto relationship, as long as your partner is under 65 and hasn’t yet retired.