How To Get The Most Out Of Your Super

1 July 2011

The below strategies will help you get the most out of your super.  

Co-Contribution;

The Australian Government will match personal contributions up to $1,000 depending on your income. You can do this through your employer, by sending a cheque/money order to your super fund or through your financial advisor.

Your income Personal contribution $ Government co- contribution to your super account
$31,920 or< $1,000 $1,000
$40,000 $1,000 $730
$50,000 $1,000 $398
$57445 $1,000 $150

NB. Individuals with income greater than $57445 should consider salary sacrifice to super rather than a personal contribution as the co-contribution benefit is less than the tax savings via salary sacrifice.

 

Salary Sacrifice;

BK to explain briefly. Maybe advise talk to accountant re: benefits?

Your income Deductable contribution Tax savings in wages Tax payable in super Overall gain
$57500 > $1,000 $300 $150 $150
$81,000> $1,000 $380 $150 $180
$181,000> $1,000 $450 $150 $300

 

Insurance inside super;

BK to explain briefly. Perhaps mention that many people already have this through their super & should contact their financial advisor to review it?

Insurance Type Amount e.g. Premium Example only Tax savings Net cost
Personal names- death and tpd $400,000 death$400,000 TPD $1000  pa nil $1000
Inside super-death and tpd $400,000 death$400,000 TPD $1000 pa $150* $850

*Based on income between $35,000 and $80,000 per year. If income is over $80,000 the savings is greater.

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