Putting money into your super account is easy. But to ensure you don’t take too much advantage of the generous tax benefits within the super system, the government has progressively tightened up the rules around making contributions. One way to get some extra money into your super account is by using a ‘bring-forward’ ... Read more
Case studies: How is the Age Pension assessed?
The current (20 March 2019 to 19 September 2019) maximum rates of Age Pension are as follows: Single: $926.20 per fortnight (approximately $24,081 per year) Couple (each): $698.10 per fortnight (approximately $18,051 per year) Note: Includes base pension + supplements. Learn more about Age Pension rates. Not everyone ... Read more
Salary sacrifice and super: How does it work?
While the sacrificing bit might sound painful, salary sacrifice is really just about giving up something now to get a financial benefit later on. Often called salary packaging, many employees choose to set up these types of arrangements with their employer to forgo part of their salary or wages to help pay for a range ... Read more
Re-contribution strategy: What is it and how can I use it with my super?
Using a re-contribution strategy with your super sounds complex and mysterious, but in reality the name says it all – you withdraw some of the savings in your super account and then you re-contribute them back into the super system. Which raises an obvious question. Why take money out of super and then put it straight ... Read more
What to do if you exceed your super contributions caps
When experts talk about super, they often warn about the importance of not going over your contributions caps, but you don’t always hear about what happens if you do. Although carefully monitoring the amount of contributions you or your employer makes into your super account each year is the wisest course of action, ... Read more
2018/2019 guide to non-concessional contributions (after-tax super contributions)
Most employees know their employer is helping to build their retirement savings by making regular contributions – like the Super Guarantee (SG) – into their super account as part of their salary package. These contributions are taxed concessionally – or at a special low rate – of 15% to encourage Australians to save ... Read more
Accessing super: Ceasing employment after 60
Ceasing employment after you reach the age of 60 is a “condition of release”, or one way you that you can access your super in Australia. Ceasing employment means leaving a job, even if you get a job with another employer. However, if you do get another job, you can only access the super benefits you’ve accumulated up ... Read more
SMSFs: What are the lump sum withdrawal rules?
As you reach retirement, you will be considering what you want to do with your superannuation in your self-managed superannuation fund (SMSF). Basically, your fund can pay benefits in the form of a lump sum, an income stream, or a combination of both. The idea of a lump sum in the hundreds of thousands of dollars can ... Read more
Life insurance through super: A definitive guide
Life insurance inside super is the most common of all personal super insurances. It is often bundled with TPD (Total and Permanent Disability) cover and sometimes with income protection insurance. Life insurance is often referred to as death cover by super funds. In this article we will look at how life insurance ... Read more
Guide to the Low and Middle Income Tax Offset (LAMITO)
LAMITO (sometimes referred to as LMITO) is an acronym for the Low and Middle Income Tax Offset that the federal government introduced as part of the 2018 Budget. It’s a temporary measure for the four financial years between 1 July 2018 and 30 June 2022. The LAMITO is intended to provide tax relief for low and ... Read more
Super tax tables: When OVER 60 years of age
The summary tables below contain the following information on super taxes for over-60s: Table 1: Contributions taxes Table 2: Earnings taxes (accumulation phase) Table 3: Benefit payment taxes for over-60s (taxed funds). All super funds except certain public sector funds. Table 3 outlines the tax treatment ... Read more
Tax-free super for over-60s, except for some
If you withdraw your super benefits after you turn 60 years of age, you can expect to pay NO tax on those super benefit payments, unless you are a member of certain types of public sector super funds, or you receive defined benefit pension of more than $100,000 a year. Note: Since 1 July 2017, certain recipients of ... Read more
Super tax tables: When UNDER 60 years of age
The summary tables below contain the following information on super taxes for under-60s: Table 1: Contributions taxes Table 2: Earnings taxes (accumulation phase) Table 3: Benefit payment taxes for under-60s (taxed funds). All super funds except certain public sector funds. Table 3 outlines the tax treatment ... Read more
Retirement: 3 ways of taking super benefits before the age of 60
When you retire early, you’re going to have to make a few decisions about your superannuation benefits. The tax implications of your retiring before the age of 60 can depend on whether you take your super as a lump sum and/or pension. Are you taking your super as a lump sum, a super pension (also known as a super ... Read more
How does SAPTO work? (Senior Australians and Pensioners Tax Offset)
SAPTO is a tax offset that’s available to eligible seniors and pensioners in Australia. It can reduce or even totally eliminate a recipient’s tax liability. It’s important to understand though that SAPTO is a tax offset. Tax offsets can only be used to reduce or eliminate your tax liability, they can’t generate you ... Read more