Working out how best to grow your super nest egg can be confusing and selecting the right mix of concessional (before-tax) and non-concessional (after-tax) contributions makes it even tougher. Whether you make small contributions over time, add a large lump sum, or use the potential tax advantages of contributing ... Read more
Superannuation Guarantee rules for employers
The Superannuation Guarantee (SG) is the official term for compulsory super contributions made by Australian employers on behalf of any full-time, part-time or casual employees who: earn more than $450 before tax in a calendar month, work in Australia (including temporary residents and working holiday makers), and are ... Read more
Guide to tax-deductible superannuation contributions
Tax-deductible super contributions are an option that more Australians can now consider due to recent legislative changes. However, it can be a complex area, so with tax-time looming, it’s a topic worth reviewing. Firstly, it’s important to understand that you cannot claim a tax deduction for any super contributions ... Read more
2018/2019 guide to concessional contributions (before-tax super contributions)
Although it can be hard 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 contributions ... Read more
Which Australian super funds accept transfers from Kiwisaver accounts?
If you have KiwiSaver savings, you can voluntarily transfer them to an Australian super fund under the provisions of a Trans-Tasman Retirement Savings Portability scheme that was introduced on July 1, 2013. Consolidating your funds in this way can help you to avoid paying multiple fees on your retirement savings. ... Read more
What is the maximum super contribution base for 2018/2019?
The Superannuation Guarantee (SG) is the name for the contribution your employer makes to your super fund on your behalf. The current SG contribution rate is 9.5% of your earnings up to a limit called the maximum super contribution base (MSCB). If you earn above that limit in a particular quarter, your employer is not ... Read more
Key superannuation rates and thresholds (2018/2019 year)
There are a range of key rates and thresholds that can affect your super, including: Concessional contributions cap Non-concessional contributions cap Division 293 tax Superannuation guarantee (SG) Superannuation co-contributions Tax offset for super contributions on behalf of your spouse Low-income ... Read more
A super guide to understanding the bring-forward rule
Note: In the 2019 Federal Budget on 2nd April the Treasurer pledged that if the Coalition win the next election Australians aged 65 and 66 will be able to make up to three years of non-concessional contributions under the bring-forward rule. Learn more about these and other super-related announcements. Putting money ... 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
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
Put your feet up? Making super contributions after retirement
Retiring today is not like the old days when you left a job and never looked back. These days Australians are fitter, more active and interested in new experiences and learning. Some people even decide to head back to the workforce after a few years. But retirement can have an important impact on your super, so you ... Read more
Know the rules: Contributing to super over 65
Once your 65th birthday rolls around, many people are keen to put their feet up and enjoy a well-earned rest. When they think about their super, it’s usually more about how to wisely spend their retirement nest egg than how to add to it. But just because you have hit 65 it doesn’t mean you shouldn’t consider making ... Read more