To retire comfortably, your employer’s 9.5% contributions to your super may not be enough. By making extra contributions, you will boost the amount of super you have when you stop working. The key though is to start now so you can relax later.
Why grow your super?
There are lots of good reasons why you should grow your super as much as possible:
- You might live to be 100 so your money needs to last
- Cost of living increases over time
- The age pension alone will not be enough for a comfortable lifestyle
- Tax benefits of super make it a good way to invest
- You might be eligible for bonus contributions from the government.
Beside the 9.5% your employer contributes there are many ways to boost your nest egg:
|Salary Sacrifice||Where you contribute more of your salary into super. This can be tax effective if you earn over $37,000 per annum|
|Make after Tax Contributions||Simply deposit your personal money into super|
|Government Co-contributions||If you earn less than $51,021 per annum (gross) and make after-tax contributions, you are eligible for matching contributions from the government. The co-contribution amount from the government reduces as your earnings increase.|
|Low Income Super Contribution||If you earn up to $37,000 per annum you may also qualify for a ‘low income super contribution’ of up to $500 from the government.|
|Self-employed Super Contributions||Most self-employed tax payers can contribute up to $30,000* per annum and the tax benefit is similar to an employee salary sacrificing. If you are over 49 you can contribute up to $35,000*.
*Note: these amounts will change as at the 1st July 2017 to $25,000 across the board
|Contribute for your Spouse||You may be able to claim an 18% tax offset on super contributions up to $3000 made on behalf of your spouse if they have no or low income. You can also split your employer super contributions with your spouse.|
For further information about any of the above types of super contributions, please contact us on 07 3883 8999 so a superannuation and/or tax professional can go through the options with you.