What is Superannuation?
Superannuation is like a savings account for your future retirement. However, it has some unique features when compared with a normal savings account:
Your employer must pay 9.5% of your salary into a super fund you choose, this is called Superannuation Guarantee contributions (SG). This will gradually increase to 12% by 2023.
All earnings from superannuation are taxed at 15%, instead of your personal marginal rates. This is why personal contributions are a tax effective savings vehicle for your money.
There are 2 types of personal contributions you can make:
- Before tax contributions, also known as salary sacrifice.
- After tax contributions, including spouse contributions. You could also receive a bonus government co-contributions up to $500 a year to your super (certain conditions need to be met)
Because of the tax concessions on the super, you must meet certain criteria before accessing your super, and generally your balance will not be available until nearer or at retirement.
3 Ways to Save More for Your Super
If you have changed jobs in the past, the chances are you will have multiple super accounts. Combining them into Smartsave means, not only will you save on multiple sets of administration fees, you will also have less paperwork to do, to help you with your retirement planning.
Simply complete the Roll – In Form and we will look after the rest.
Or, if you are not sure where your super is held, we can help you find them and consolidate with your existing Smartsave account. To find out more, please click here.
Take advantage of the tax concessions and the co-contribution options the government is offering. Make a before tax contributions or after tax contributions to give your retirement a boost.
Provide us with your Tax File Number (TFN) to avoid higher tax on your concessional contributions and on super benefits. It will also make it easier to locate lost super and consolidate your super. If you are not sure if we hold your TFN, give us a call on 1300 654 720, or complete a Member Variation Form available on the Forms & Publications page click here.