ANZ Smart Choice Super Investor Update : Member Update Winter 2014
17 17 Asking your employer to “sacrifice” some of your salary for extra super contributions can also be a tax-effective way to boost your savings as the money is generally taxed at 15 per cent going into your fund, instead of your marginal rate. Many women think salary sacrifice is just for higher income earners, but that isn’t necessarily the case. Talk to your employer. Even sacrificing a small amount such as $20 a week can add up over time. If you are a sole trader or in a partnership, it is particularly important not to neglect your super, as you don’t have the luxury of an employer making the 9.50 per cent compulsory contributions for you. One way of covering this is to set aside 9.50 per cent for super each month. You could also save the money to make a lump sum contribution at the end of the financial year. Either way, your contributions may be tax-deductible subject to satisfying the eligibility requirements. Don’t feel you have to do it all yourself Making your own contributions is a great start, but you can turbo- charge your savings by recruiting your partner as well. If you’re short of your own cash, but eligible for the super co-contribution, there is no reason your partner can’t help you make a personal contribution. Another benefit is the spouse super contribution tax offset that gives your partner a tax break on contributions of up to $3,000 to your account if you earn less than $13,800. This is available even if you’re not working at all. While not widely used, your spouse can also elect to split their own super contributions with you. Your partner may also be willing to help fund voluntary or “non- concessional” contributions to your fund – though as the name implies, these have to be made from after-tax money. If you do go through divorce or separation, says Vamos, don’t forget your partner’s superannuation. While it may not be as visible as the family home and other assets, it is one of the assets that can be split as part of any settlement. If you are... You should live another... 25 59.8 years 35 50.0 years 45 40.4 years 55 31.0 years 65 22.0 years SOURCE: ABS 2 Annette Sampson is an independent writer and consultant. This article has been commissioned by Fairfax and sponsored by ANZ.
Member Update Spring 2014
Member Update Autumn 2014