What type of contribution
is right for me?
Your employer may already be contributing to your super account. But you might be thinking of adding a little more, because even small additional amounts, into your super today, can make a big difference down the track. And by contributing more, you may even end up paying less income tax.
Our on-demand webinar, Growing your super, can help you understand the various contribution strategies and their potential benefits.
Each contribution type has different features and benefits, and how they may fit with your personal circumstances and financial commitments also differs. Keep reading to discover ways to grow your super.
Salary sacrificing into super
If you can afford to give up some of your salary to grow your super, and your employer allows, you can arrange for ‘salary sacrifice’ contributions. Salary sacrificing means you agree with your employer to direct part of your before-tax salary straight into your super account. These contributions are on top of compulsory contributions made by your employer. Salary sacrifice contributions count towards your concessional contributions cap.
Voluntary contributions
Adding to your super account by contributing a little more from your take-home pay can be a great way of growing your super. Even small amounts contributed now can grow into big amounts when you’re ready to retire.
What’s more, if you’re employed, self-employed or earn a taxable income from other sources (such as investments), you might be eligible to claim a deduction to reduce your taxable income. Super contribution you claim as a tax deduction count towards your concessional contributions cap. If you don’t claim a tax deduction for voluntary contributions, these amounts count towards your non-concessional contribution cap.
Growing your spouse’s super
You may be able to add to your spouse’s super account to help you both get set for a rewarding retirement. Perhaps your spouse works part-time and has a smaller super account. Or they’ve had a career break. It doesn’t mean their super can’t keep growing.
Other ways to grow your super
Bring your super together
Consolidating your super by bringing it together in one place can be one of the most effective ways to grow your super, by no longer paying multiple fees and potentially multiple insurance premiums.
Catch up
Contribute more by carrying forward unused accumulated ‘concessional contribution’ limits from previous financial years into the current and future financial years.
Downsizer
You may be able to contribute some of the proceeds from the sale of your home to super.
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