Clever super strategies to consider
Consolidate your super
It’s much easier to keep track of your money if it’s in one account and, you’ll probably pay less fees. Download our for more information.
Beef up your super savings
The before-tax contributions (also known as concessional contributions) you make, and performance returns you may earn inside super are taxed at 15%. For many people, saving through super is much more tax effective than saving the same amount outside super.
Spouse contributions
In many cases one spouse accumulates the lion’s share of the super. Boosting your spouse’s super can reduce your family’s annual tax bill.
Tax rebate for additional spouse contributions
If your spouse earns less than $10,800 pa, you can make a $3,000 after-tax contribution (also known as a non-concessional contribution) to their super account. This may qualify you for a tax rebate of $540. This strategy can be used each year.
Co-contributions – let the government top up your super
People who earn less than $31,920 a year can potentially receive a $1,000 helping hand from the government via a free ‘co-contribution’ into their super fund. If you earn $31,920 to $61,920 a year, you can still receive a super co-contribution but it will be adjusted depending on your income and how much you personally contribute. From 1 July 2007 self-employed people may also be eligible to receive a co-contribution.
Take a long-term view
Super is generally a long-term investment (ie seven years or more). And since you can’t access your money until you retire, you might want to think about using a growth investment strategy. For more on growth assets read Why consider growth assets?
Beware of the caps
There are caps on the amount of concessional (before tax) and non-concessional (after tax) contributions you can make each year. See our flyer for more information. Please see Super terms explained for more information on concessional and non-concessional caps.
What to consider next
Speak to your financial adviser or choose an option here:
The information contained in this document is based on the understanding Colonial First State Investments Limited ABN 98 002 348 352 AFS Licence 232468 has of the relevant Australian laws as at 1 July 2009. This document is not advice and is intended to provide general information only. It does not take into account your individual needs, objectives or personal circumstances. You should assess whether the information is appropriate for you and consider talking to a financial adviser before making an investment decision. Product Disclosure Statements (PDS) for products offered by Colonial First State are available from colonialfirststate.com.au or by contacting us on 13 13 36. You should read the relevant PDS and consider whether the product is right for you. Past performance and awards are no indication of future performance.
