AFTA@Work Newsletter - December
Qantas Staff Credit Union
Australians on average are living longer. We commonly spend over twenty years in retirement and the need to accumulate savings while we are still working to fund this increasing retirement period has never been greater. Below are some super strategies to help boost your retirement nest egg and the sooner you start the better!
The Government co-contribution is an effective way to boost your super savings and should be seriously considered by low income earners. If eligible, the Government will contribute up to 50 cents for every $1 of personal after-tax contributions you make - please consult your financial planner to confirm you meet the eligibility criteria.
Many people aren’t aware that you can make superannuation contributions on behalf of an eligible spouse. This super strategy can be very effective where one member of a couple is paying tax and could utilise a tax offset while the other member of the couple earns little or no income and would greatly benefit from an injection into their super fund. Spouse contributions can be tax effective under the spouse contribution rules, a tax offset of up to $540 may be available for the spouse who makes the contribution if certain conditions are met.
Contribution splitting is the situation where a member of a couple can transfer up to 85% of concessional (before tax) contributions made in a financial year to an eligible spouse. This strategy can assist couples where one member of the couple is on a high marginal tax rate and can take advantage of the generous tax concessions of making additional before tax contributions to super. These additional contributions can then be transferred to the spouse to fund insurance cover and to boost savings for retirement. Making extra super contributions now to split with your spouse may also be beneficial to help equalise the amount of super held by each member of a couple allowing both parties to access tax effective income streams and lump sums in retirement.
Salary sacrificing some of your before tax salary into superannuation is a well known super strategy to tax effectively increase an employee’s super balance. For the self-employed, this strategy can be achieved by claiming a tax deduction for your super contributions. Tax deductible super contributions can be made by an “eligible” person that is generally a self employed person or someone earning less than 10% of their total income from an employer. These tax deductible contributions are referred to as “concessional” contributions and limits apply to the amount that can be contributed tax effectively.
The key to successful money management and superannuation strategies lies in planning, and at Qantas Credit Union we have a dedicated team to help you look ahead and prepare for the future to help you build prosperity and security.
If you’d like to talk to us about your superannuation strategies, savings accounts or just help on budgeting, call us today on 1300 747 747 or visit our website www.qantascu.com.au
The information in this article is of a general nature and does not constitute as advice in relation to any investment of purchase. It has been produced without taking into consideration your personal financial circumstances, objectives or needs. Prior to making any investment or purchase you should conduct your own investigation and analysis of any benefits or costs associated with such. You should seek your own independent legal and financial advice. You should read and consider the Product Disclosure Statement before making a decision to open an account. Qantas Staff Credit Union Limited trading as Qantas Credit Union ABN 53 087 650 557, AFSL/Australian Credit Licence 238305.