News
2 September 2009 How to grow your super account balance
The best way to grow your super account balance is to start saving early and put contributions in regularly. This is because super is a long-term investment vehicle that you can’t normally draw on until later in life. So the earlier you kickstart actively growing your super, the easier it will be for you, because your savings benefit from many years of tax concessions and compounding on your investment earnings.
1) Government Co-contribution
Depending on your salary, for every $1 you put into your super, the government puts in up to $1 into your super for you, to a maximum of $1,000. Do this every year as a smart and easy way to grow your super account balance! More
2) Salary Sacrifice
Salary sacrifice means giving up a portion of your before-tax wage or salary as an extra contribution into your super on top of the 9% Super Guarantee contributions you receive from your employer. This tax-effective, gradual way of contributing can help grow your super account balance without significantly impacting on your current lifestyle. More
Benefits:
-
As salary sacrifice reduces your take-home pay, it may also reduce the amount of tax you pay.
-
Salary sacrifice contributions are only taxed at 15%. So if your income tax rate is higher than 15%, salary sacrificing can be a good way to reduce the amount of tax you pay whilst growing your super savings.
3) Spouse Contributions
If you are either not working or earning less than $13,800 a year, your employed spouse can contribute to your super and get up to $540 tax rebate from the Government. This boosts your super account balance without any additional work from you! More
4) For self-employed people
If you’re self-employed (less than 10 per cent of your income is from working for an employer), you can claim a full tax deduction on any contributions you make to super. You can even claim the Government Co-contribution if you qualify! For more information, call our Member Services team on (03) 9911 3222 or 1300 300 820 for regional members.
Your super account is your partner for life; it continues working for you and producing returns decades after you have stopped working. So take advantage of these great ways to contribute and keep growing your super!
back to the news list
|
|
|
