How To Boost Your Super
Your superannuation is a key investment when it comes to saving for your retirement, and there are ways you can boost these savings.
Your employer will contribute an amount equal to 9.5% of your salary into your super, and you may also decide to contribute additional money from your pay, or by using other available savings.
There are two types of contributions you can make: Concessional Contributions and Non-Concessional Contributions:
- Concessional Contributions are sometimes referred to as employer or before-tax contributions. These are all contributions that you or your employer make to your super before your income is taxed, and any personal contributions that you claim as a tax deduction on your income tax return. Concessional contributions are capped at a total of $25,000 per financial year (for the 2017/2018 year).
- Non-Concessional Contributions are sometimes referred to as personal or voluntary contributions, as these are voluntary, after-tax contributions to your super. These are contributions you or your spouse make from your take-home pay. The cap for non-concessional contributions is $100,000 per financial year (for the 2017/2018 year). Anyone who has super worth $1.6 million or more aren’t eligible to make non-concessional contributions into their super. If you are under age 65 and had less than $1.5 million in super as of July 1st 2017, you can bring forward an extra two years’ worth of contributions and make a lump sum payment into your super of up to $300,000 in one financial year.
Another way to boost your super is with Government super contributions – the super co-contribution and low-income super tax offset. If you are eligible and your super fund has your tax file number (TFN), these will be paid into your super fund account automatically.
If you’re interested in making extra super contributions out of your pay, talk to your employer about the opportunity to do so. If you would like further information about the different contributions you can make to your super, do not hesitate to contact us – we are here to help!