If you’re in a position where you know you need to grow your super, or you simply want to get proactive about it, it’s useful to know your choices. Picking the smartest way to contribute not only means you’re boosting your super, but possibly cutting your tax bill as well.
Even smaller balances close to retirement could benefit from extra contributions, as money in super stays invested and keeps compounding if returns are positive.
Contributing for yourself
Here are two easy-to-set-up options:
- Salary sacrifice, where you ask your employer to contribute extra super from your concessional (before-tax) salary. It can be tax-effective if you earn more than $37,000 per year. Just be aware, salary sacrifice isn’t an option in every workplace, so check your employer offers it before going down this path.
- Personal contributions. You can contribute any time using the BPAY details found in your account or via direct debit. This option gets points for flexibility if you have ad hoc amounts to contribute, or you can set up an automatic ongoing payment.
To see the difference even a few dollars could make, use our Spare change calculator.
Contributing as a couple
If you’re in a married or de facto relationship, contributing for each other can ensure both accounts keep growing if you’re out of the workforce for career or personal reasons. And there can be tax benefits for contributing for each other.
These are your choices:
- Contribution splitting, where you split up to 85% of the concessional (before-tax) contributions you’ve earned throughout the financial year with your partner.
- Spouse contributions, where you make contributions for your partner flexibly. If the partner receiving contributions earns a low or no income, you may be able to claim a tax offset of up to $540 for these contributions.
We’ve got forms to help you learn more and set up either option.
There are annual limits on the amount you can contribute to super, referred to as ‘caps’. For concessional (before-tax) contributions the limit is $25,000 and for non-concessional (after-tax) contributions it’s $100,000. The different types of contribution options give you the flexibility to contribute under each cap and not go over. Get the details.
Getting help with contributions
- Visit our website to learn more about your choices and any eligibility requirements or call us on 1300 360 149 and we’ll happily talk you through it.
- Close to retirement? To make sure you’re getting the maximum bang for buck, get a plan sorted with our financial advice team.*
*Financial advice is offered through CareSuper's relationship with Industry Fund Services Limited (IFS), and is provided by an authorisation under the Australian financial services licence of IFS, ABN 54 007 016 195, AFSL 232514.