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
Beginner’s guide to making super contributions
Building a sizeable retirement nest egg can take some effort, but a recent study by Roy Morgan found only 18% of employees with super currently have more than the compulsory 9.5% of their salary or wages going into their super fund account. This is a significant drop from 2009, when nearly a quarter (23%) of workers ... Read more
2019/2020 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
2019/2020 guide to concessional contributions (before-tax super contributions)
Although it can be difficult getting your head around all the different types of super contributions that go into your super account, concessional contributions are the ones you are mostly likely to have and are pretty straightforward to understand. Concessional contributions – what’s that mean? Concessional ... Read more
A super guide to understanding the bring-forward rule
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
Carry-forward contributions: How your unused contribution limits can help you catch up
Feel like you’ve missed the boat when it comes to your retirement savings? Carry-forward super contributions could be the answer for many Australians looking to boost the balance in their super account. What are carry-forward contributions? Carry-forward contributions are not a new type of contribution, they are simply ... Read more
How the Division 293 tax works: Super surcharge for high earners
For most high income earners, saving for your retirement through super is a sensible strategy, but you need to watch you don’t fall foul of the dreaded Division 293 tax. This delightfully named tax is an extra charge imposed on super contributions made by higher income earners. It is designed to reduce the tax ... Read more
The rules of superannuation: Your guide for 2019/2020
When you mention super, most people shake their head and mutter about the constant rule changes. Looking back over the past few years it’s a fair comment, with many significant changes occurring – and many more proposed but never legislated. If you are wondering how those changes have affected your super and ... Read more
Quiz: Boosting your super with super contributions
Take the following 10 question quiz to test your knowledge on boosting your super with superannuation contributions. Don't worry if you don’t know the answer to a question. Have a go anyway and we’ll let you know the correct answer, as well as providing you with a link to a relevant article. Note: When you pick an ... 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, if ... Read more
Contribution splitting: How to boost your spouse’s super
Topping up your spouse’s retirement savings account with some of your own super contributions can be a great way to help them save for life after work – and possibly save yourself some tax in the process. Splitting your super contributions with your spouse can be sensible if your spouse is only working part-time or has ... Read more
Capital gains and super: Using super contributions to reduce your CGT bill
Super contributions can be used in many different ways when it comes to planning your finances and saving for your retirement. In the right circumstances, they can also be a very useful tool for minimising your tax bill. It’s often overlooked that your super contributions can be used to reduce the amount of capital ... Read more
Your simple guide to Superannuation Guarantee (SG) contributions
As employees, most of us see the regular note on our payment summary listing the amount for our employer’s Superannuation Guarantee (SG) contribution into our super account and rarely give it much thought. To help you understand it a little better, here’s SuperGuide’s simple explanation of the SG and what it means for ... Read more
Richest Australians to take super hit
Next month’s federal budget will hit the generous superannuation tax breaks received by the very richest Australians. The target will be the highest one to two per cent of earners, with the government arguing that the cutback is necessary to keep superannuation concessions sustainable over the longer term. ... Read more