Salary sacrificing superannuation, by making before-tax super contributions, is a popular strategy for employees on middle-to-high incomes. The deal is that you increase your superannuation balance while reducing the amount of income tax payable on your salary or wages. More specifically, by salary sacrificing super ... Read more
Superannuation Guarantee: Many Aussies miss out on SG increase
Now that we into our fifth financial year of a higher Superannuation Guarantee rate of 9.5%, you can expect some difficult conversations to continue between employers and employees as more salaried employees discover that the Superannuation Guarantee (SG) increase of 0.25%, which took the SG rate to 9.5%, does not ... Read more
Super for beginners: A starting guide
When learning more about superannuation and retirement planning, a good place to start is trying to explain what superannuation actually means. Superannuation is an awkward word, but in plain English, when most people refer to superannuation, they are referring to a special long-term savings account with tax benefits. ... Read more
Super health check for beginners: 10 tips for your 2018/2019 retirement planning
Note: This article is current for the 2018/2019 financial year. SuperGuide regularly publishes an updated super checklist for beginner readers. More advanced checklists can be found elsewhere on the site. Use this list as a prompt for your 2018/2019 super resolutions. You may not keep all of your resolutions, but ... Read more
Does changing to part-time at 60 years, count as ‘retiring’?
Q: I am 60. I am interested in the condition of release relating to turning 60 and resigning. Is it sufficient to satisfy the ’turning 60 and resign’ condition of release by changing my employment arrangement from full-time to part-time, with the same employer? A: Most super benefits are preserved until retirement, ... Read more
Want to make 50% return on your super contribution?
If you earn less than $53,000 or so a year, or your spouse or children earn less than $53,000 or so a year, then you, or your spouse, or child, have an opportunity to potentially make a 50% return on your money when you make an after-tax super contribution to your super fund. Read on to find out how you can turn ... Read more
Over-65s work test: How does it operate?
Does 40 hours in any 30-day period include weekends or is it 6 x 5-day weeks? I read in a bank’s booklet on superannuation that it must be “at least 40 hours in a period of not more than 30 consecutive days during the financial year ….”. This seems to imply working beyond 30 days is not permitted. Is there a maximum ... Read more
Does shift work count for SG entitlements and income protection insurance?
Q: I’m a shift worker and have a question about whether my ‘Super fund salary’ figure which my employer gives to my super fund should include both my base and shift loading salary. At the moment it only includes my base even though my employer does pay super for both my base and shift loading. What I’m concerned about ... Read more
Salary sacrificing will not increase co-contribution entitlement
Q: I understand salary-sacrificed super contributions must be added back in to assessable income for co-contribution purposes. Do you know anything about this? Yes, your understanding is correct. Salary sacrificed contributions count towards the co-contribution income test, and this has been the case for quite a few ... Read more
Who can now make tax-deductible super contributions?
Note: Since 1 July 2017, all eligible Australians under the age of 75 can claim tax deductions for personal super contributions, subject to the annual concessional contributions cap. What this means is that, for the 2018/2019 year (and for the 2017/2018 year), and future financial years, employees can make ... Read more
Super Tip No 3: Turn $1000 into $1500 in three steps
We don’t normally suggest ‘easy money’ strategies. We’re often sceptical about the motives of the individuals suggesting such strategies, which means we don’t like being boxed in that same category. In this instance however, we are going to explain a government-backed strategy which means, if you’re eligible, you are ... Read more
Does the government’s co-contribution count towards my contributions cap?
Q: Does a co-contribution received after using up the total bring forward cap of $300,000 mean that an excess contribution has been made, or is the Government co-contribution excluded from the after-tax contribution cap? A: A superannuation co-contribution is a super contribution paid by the federal government into ... Read more
