superannuation

Clever Strategies for Super


1. Consolidate your super
It’s much easier to keep track of your money if it’s in one account and, you’ll probably pay less fees. Download our Consolidate your super flyer for more information.

2. Beef up your super savings
The before-tax contributions (also known as concessional contributions) you make, and performance returns you may earn inside super are taxed at 15%. For many people, saving through super is much more tax effective than saving the same amount outside super.

3. Spouse contributions
In many cases one spouse accumulates the lion’s share of the super. Boosting your spouse’s super can reduce your family’s annual tax bill.

4. Tax rebate for additional spouse contributions
If your spouse earns less than $10,800 pa, you can make a $3,000 after-tax contribution (also known as a non-concessional contribution) to their super account. This may qualify you for a tax rebate of $540. This strategy can be used each year.

5. Co-contributions – let the government top up your super
People who earn less than $31,920 a year can potentially receive a $1,000 helping hand from the government via a free ‘co-contribution’ into their super fund. If you earn $31,920 to $61,920 a year, you can still receive a super co-contribution but it will be adjusted depending on your income and how much you personally contribute. From 1 July 2007 self-employed people may also be eligible to receive a co-contribution.

6. Take a long-term view
Super is generally a long-term investment (ie seven years or more). And since you can’t access your money until you retire, you might want to think about using a growth investment strategy. For more on growth assets read Why consider growth assets?

7. Beware of the caps
There are caps on the amount of concessional (before tax) and non-concessional (after tax) contributions you can make each year. See our Federal budget flyer for more information. Please see Super terms explained for more information on concessional and non-concessional caps.