Super for families
Raising a family is one of the best jobs in the world. But between Bluey and birthday parties, it can be tricky to keep on top of things like super.
On this page, we provide three tips for families looking to keep their super up to date and take advantage of the incentives available.
Key learnings covered in this topic
- Understanding who you can nominate as your beneficiary and the type of nomination you can make
- Explore ways to keep your super on track if you’re taking time away from the workforce
- Check your insurance cover meets your needs
1. Check your beneficiaries
Coupled up with a long-term partner or welcomed a little one into the family? Now’s a great time to look at nominating or updating your beneficiaries. This can make sure your super goes to your loved ones in line with your wishes if you pass away.
You can nominate someone you have an interdependant, dependent or financially dependant relationship with, like your spouse or child.# Or you could nominate your ‘legal personal representative’, who might be either the executor of your will or the administrator of your estate.
When it comes to the actual nomination, there are two types you can make:
- A binding nomination limits surprises. As long as it's valid at the time of your death, your super fund has to do exactly what it says. You can choose a lapsing binding nomination (which will be valid for three years) or a non-lapsing binding nomination (which doesn’t expire unless you cancel it)
- A non-binding nomination acts as a guide only, and there’s a chance your super may not be distributed in line with your wishes.
If you don’t choose a beneficiary, we’ll decide who receives your super in accordance with superannuation and trust law. We’ll investigate if you have any dependants and make a decision based on who we determine has the greatest needs.
Learn more about beneficiary nominations
2. Take advantage of super incentives
Taking time away from your work schedule to master the nap routine? It’s possible your employer contributions will stop while you’re not working, which could have a big impact on your super savings in the long run.
The good news? There are incentives and strategies in place to help you and your partner balance and grow each other’s super. These are especially relevant if you’re taking a career break or if one of you is bringing home a bigger or smaller paycheck than the other.
Contribution splitting
This strategy allows you to pay up to 85% of your before-tax contributions into your partner’s super account. Before-tax contributions include the super your employer pays you, any salary sacrifice you make, and any personal contributions that you claim tax back on. To request spouse contribution splitting, you need to complete the Contribution splitting form.
Spouse contributions
This strategy enables you to make an after-tax contribution to your spouse’s super. If they have low or no income, you can also claim a tax offset of up to $540 on this contribution. To make a contribution, you need to complete the Spouse contribution advice form.
- Both spouses must be Australian residents who were living together on a permanent basis when the contributions were made
- The contributions were made to a complying super fund (like CareSuper) during the same financial year as claiming the offset
- The contributions were not tax deductible
- The assessable income, total fringe benefits and employer super contributions for the receiving spouse were less than $40,000.
- Your spouse’s total superannuation balance must be less than $1.9 million on 30 June of the previous financial year in which the contribution was made.
Government super co-contribution
If you make an after-tax contribution to your super, you may be able to receive the Government’s co-contribution payment. The payment, which is up to a maximum of $500, depends on your income and how much you contribute. You don’t need to apply to get the co-contribution. If CareSuper is your only super fund, the Australian Tax Office will generally pay it into your account after your tax return has been processed.
- You made an eligible personal super contribution to your account during the financial year
- Your total income is less than $58,445 for the 2023/24 financial year
- At least 10% of your income comes from employment or business-related activities, and
- You had a total super balance of less than your transfer balance cap (as at 30 June of the previous financial year).
And during the financial year you:
- Were under 71 years of age (at the end of the financial year)
- Didn’t hold a temporary visa
- Didn’t exceed your non-concessional contributions cap, and
- Lodged your tax return.
3. Review your insurance
Your insurance needs will change over time, much like your tolerance for kid's TV shows or the number of grey hairs on your head. So, if you’ve recently upgraded from a duo to a trio or more, now’s the perfect time to check your insurance.
At the end of the day, the amount of cover you need will depend on various factors. Think earnings, household expenses and any debt, such as a mortgage.
Not currently working a paying job? Even if you’ve traded PowerPoints for playdates, consider what it would cost to cover your domestic work if you weren’t around. Things like childcare and household chores are often overlooked but should be factored in when assessing if your cover is right for you and your family.
If you’re a CareSuper member and want to tailor your insurance, you can apply, reduce (if eligible) or cancel it at any time through MemberOnline.
For more information and eligibility requirements see our Insurance Guide
And if you’re too busy with temper tantrums to work out your insurance needs, our financial advisers can help.*
Information correct as at 14 November 2023.
#There are strict rules around who you can nominate as a beneficiary. Read our Nominating your beneficiaries fact sheet for all the info.
*Financial advice obtained over the phone, or through MemberOnline, is provided by Mercer Financial Advice (Australia) Pty Ltd (MFAAPL) ABN 76 153 168 293, Australian Financial Services Licence #411766.