Make extra contributions
Are you missing out on $500 from the government?
From 1 July 2014, if you make voluntary contributions and you earn less than $34,488 a year, you may be entitled to a government co-contribution of up to $500 per financial year.
If you earn over $34,488 but less than $49,488 you may still be entitled to co-contributions but the amount will be reduced based on your actual income and your contribution amount.
Extra employer contributions
From 1 July 2014, your employer will contribute 9.50%, which is a good start, but for many people, this is not enough to keep up your current lifestyle in retirement.
Salary Sacrifice means instead of receiving your pay in full, you arrange to have some of your pay invested directly into your super fund on your behalf. The contribution is taken out of your pay before income tax is deducted, so you will pay less tax on your income.
For example, if you earn $50,000 a year and opt to Salary Sacrifice $10,000, income tax will only be based on $40,000 which means you pay less tax. The $10,000 is paid to your super fund and is only taxed at 15% which is a lot less than the income tax payable at 31.5%.
As salary sacrifice is not offered by all employers, ask yours if they offer a salary sacrifice option.
Voluntary (after-tax) contributions
You can choose to make voluntary (after-tax) contributions to your super in addition to what your employer contributes. Voluntary (after-tax) contributions, which you pay out of after-tax income, are a good way to top up your super.
If you're self-employed, you may be able to claim tax deductions on voluntary super contributions.
Depending on your income you may be entitled to a co-contribution from the Government.
There are four easy ways to make voluntary contributions to your Club Plus Super account:
- BPAY®: call Club Plus Super on 1800 680 627 for your BPAY biller code and reference number.
- Cheque: complete the Voluntary Contribution form, attach your cheque(s) and send it to: Club Plus Administration, Locked Bag 5007, Parramatta, NSW 2124.
- Direct debit: complete the Direct Debit Authority form and Club Plus Super will deduct regular amounts from your nominated bank account and invest it in your super account.
- Payroll deduction: complete a Payroll Deduction Authority form and give it to your employer. This will allow your employer to deduct nominated amounts from your pay and remit it to the fund.