If you’re working, check whether your employer supports salary sacrificing arrangements. Salary sacrificing is when your employer pays part of your before-tax income straight into your super account, on top of the 10% super guarantee contributions that they already make for you.
Putting in a little extra each week can make a difference over the long term whilst saving you some tax. For example, by salary sacrificing $76 per fortnight of your before-tax income, a 30 year old on a salary of $80,000 pays $685 less tax and will have contributed an extra $1,687 to their super.
1 The ATO defines a spouse as another person (of any sex) who:
If you’re in a relationship and have made contributions under the threshold to your spouse’s super fund or retirement savings account (RSA) during the financial year, you may be entitled for a spouse contribution tax offset if your spouse was under 75 at the time the contribution was made.
Your spouse must be under 75 years old to receive a spouse contribution. Your spouse’s income must also be less than $40,000. Refer to the ATO link for more details. Learn more.
Important Information: Colonial First State Investments Limited ABN 98 002 348 352, AFSL 232468 (CFSIL) is the issuer of interests in Commonwealth Essential Super ABN 56 601 925 435 (Essential Super) and is a wholly owned but non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124 (Commonwealth Bank). This document is issued by CFSIL and may include general financial product advice but does not consider your individual objectives, financial circumstances or needs. You should read the Product Disclosure Statement (PDS) and the Reference Guide for Essential Super carefully and consider whether the information is appropriate for you before making an investment decision. Download the PDS and Reference Guide at commbank.com.au/essentialsuper-documents or call us on 13 4074 for a copy. The Target Market Determinations (TMD) for our financial products can be found at www.cfs.com.au/tmd and include a description of who the financial product is appropriate for, and any conditions on how products can be distributed to customers. The Commonwealth Bank provides certain distribution and administrative services to CFSIL. The Commonwealth Bank and its subsidiaries do not guarantee the performance of Essential Super or the repayment of capital by Essential Super. An investment in Essential Super is via a superannuation trust and is therefore not an investment in, deposit with, or other liability of the Commonwealth Bank or its subsidiaries and is subject to investment risk, including loss of income and capital invested. Where we mention `we’, `us’ or `our’, we mean CFSIL.
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. Colonial First State Investments Limited 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.