Building your Super
Building your super can be an effective way to save for your future needs. Are you maximising your opportunities to help your super grow?
Superannuation is a tax effective retirement savings vehicle that can help you build wealth and provide you with a tax effective income stream to help fund your retirement.
Who can contribute to super?
- Individuals under 65
- Individuals between 65 and 74 who have satisfied the ‘work test’
- Employers
The ‘work test’ requires individuals over 65 to work at least 40 hours within a consecutive 30-day period in the financial year in order to be eligible to contribute into super.
Contributions may be made by you, your employer and in some circumstances, even your spouse.
What kind of contributions can I make?
There are different types of contributions that can be made, each with their own taxation and estate planning characteristics.
Contributions can include:
- Non-Concessional contributions (After Tax)
- Concessional contributions (Pre Tax) – including Employer SG, Salary Sacrifice and Personal Deductible.
- Spouse contributions
- Co-Contribution
- Spouse Split Contributions
Some contributions help you reduce your income tax, whilst other contributions can make you eligible for Government benefits such as the Co-Contribution. Every contribution can help to build your super, and by starting sooner you can benefit from the effects of compounded earnings.
However - Be Careful – breaching your contribution caps could result in severe penalty tax.
To maximise your superannuation contributions in the most tax efficient and budget friendly way, talk to a Health Super Financial Planner about what is appropriate for you and your situation.