Posted on 9 June '15 by , under General News.
Superannuation is still one of the best ways to accumulate savings for retirement. To make the most of your super, members need to be ‘super savvy’ and be aware of tax-effective strategies that can help boost their super and achieve their financial goals.
1. Review your super fund and insurance options to determine if it is the right fund for you. If you have ever had more than one job, it’s likely that you also have more than one super fund. Consolidating could lower your fees and make a big difference to your end balance.
2. Salary sacrificing is a great way to grow your super and minimise tax at the same time. Advise your employer to allocate a portion of your before-tax salary into your super account, which are only taxed at a maximum of 15 per cent.
3. Spouse contributions, where you contribute an amount to your partner’s super, can help reduce your family’s annual tax bill.
4. Be aware of the contributions caps. The Government recently made changes to the treatment of excess non-concessional superannuation contributions, which may affect how much you contribute each year.
5. Take advantage of Government co-contributions. Individuals who earn less than $49,488 per year and make a non-concessional contribution to their super are eligible for a Government co-contribution.