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Guidance

Tips to boost your super

Tips to boost your super

Your retirement may either be a distant thought or just a few years away, but it’s never too early (or late) to think about topping up your super.

By putting in a little extra now, you could go some way toward making a difference in the future.

Here are a few ways you might be able to add to your super savings.

Salary sacrificing

You can ‘sacrifice’ some of your before-tax salary and/or bonuses and get your employer to pay it into your super for you. Not only does this help increase your super savings but it might also:

  • Assist with tax management as you are generally subject to only 15% tax on these contributions, instead of your marginal tax rate (plus Medicare levy and other applicable levies)
  • Move you into a lower tax bracket

Get help from the government

  • You may be eligible for either the super co-contribution or the low-income super tax offset (LISTO)1 or both, which means the government adds to your super
  • Check the Australian Taxation Office (ATO) website to check what you need to qualify and how to apply if you need to

Contributions from your spouse

  • If you go on parental leave, your working spouse may be able to contribute to your super. This will ensure your super is still being added to, even when you’re not receiving regular contributions from your employer.

Bring your super together

If you’ve lost track of your super and have multiple super accounts, you may be paying multiple sets of fees. There is also millions of dollars’ worth of unclaimed and lost super in Australia. Consider checking with the ATO for your lost super and consolidating your super into one account so you can keep track of it easily.

Before making a decision, you should compare the costs, risks and benefits of your various funds. It’s also a good idea to consider things like fees, investment strategy, loss of insurance cover and any costs for rolling over from your other super funds as well as any investment or tax implications.

Watch your limits

Remember, the Government has set caps that limit the level of contributions you can make into super for each financial year before more tax applies. Ensure you know the current limits and how they will change from 1 July 2017, so you don’t get charged additional tax.

If you want to discuss strategies on how you might be able to boost your super, speak to a Commonwealth Financial Planner.

Prior to 1 July 2017, this is instead called the low income superannuation contribution.

This article is intended to provide general information only and does not take into account your individual objectives, financial situation or needs. Taxation considerations are general and based on present taxation laws and may be subject to change. You should seek independent, professional tax advice before making any decision based on this information. The Commonwealth Bank is also not a registered tax (financial) adviser under the Tax Agent Services Act 2009 and you should seek tax advice from a registered tax agent or a registered tax (financial) adviser if you intend to rely on this information to satisfy the liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law. Commonwealth Financial Planners are Representatives of Commonwealth Financial Planning Limited ABN 65 003 900 169 AFSL 231139, a wholly owned but non-guaranteed subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124.