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What Are The Super Contributions With Benefits in Australia?

Many people neglect super savings, despite knowing that it's there and belongs to them. Most people only hope or believe that it will be sufficient when the time comes. If it isn't, they're probably aware of the government's Age Pension and might consider it a fallback option if they come up short.

However, some are unaware that not everyone is eligible for the Age Pension and that if they are and plan to rely completely on it in their later years, they may have to live a more modest lifestyle.

So, how much super do we require, and how can we boost our super savings while still taking advantage of the many tax benefits offered by the super system? For more information and other important concerns, see the points below or contact a wealth adviser in Queensland.

What Level of Super Do You Need?

Individuals around the age of 65 who want to retire would need an annual budget of $44,224 and $62,562, respectively, according to December 2020 figures from the Association of Superannuation Funds of Australia (ASFA), or $28,179 and $40,739, respectively, to fund a modest lifestyle, which is better than living on the Age Pension.

What Are The Super Contributions With Benefits?

Tax-Deductible Contributions

Tax-deductible payments are contributions that you make on top of what your employer may pay you under the super guarantee, assuming you're eligible.

You make these contributions with after-tax cash (for example, by transferring funds from your bank account to your super), and then you can claim a tax deduction when filing your taxes.

If you receive some extra income that you would otherwise pay tax on at your personal income tax rate, putting money into super and claiming it as a tax deduction may be beneficial (as this may often be higher).

Similarly, if you sell an asset for which you must pay capital gains tax, you may select to put some or all of the proceeds into super to claim a tax credit. This could assist in minimising or even eliminating the amount of capital gains tax owed.

The Government's Co-Contributions

You may be eligible for a government co-contribution of up to $500 if you're a low to a middle-income earner who has made an after-tax payment to your super fund for which you don't claim a tax deduction.

If your total income in the 2020/21 financial year equals or less than $39,837 and you make after-tax payments to your super fund of $1,000, you'll get the maximum co-contribution of $500.

Your maximum entitlement will gradually drop as your income rises in the 2020/21 fiscal year if the whole income is between $39,837 and $54,837.

If your 2020/21 fiscal year income is equal to or greater than the higher income threshold of $54,837, you will not be eligible for a co-contribution.

Contributions From The Spouse

If you make more than your partner and want to supplement their retirement funds or vice versa, you can consider making spouse contributions.

If you are qualified, you can contribute up to $3,000 to your spouse's super fund and claim an 18 percent tax credit on your tax return.

You must donate a minimum of $3,000, and your partner's annual income must be less than $37,000 to be eligible for the maximum tax offset of $540.

If your income exceeds $37,000, you may still be eligible for a partial tax credit. After their income exceeds $40,000, you won't be eligible for any tax breaks, but you can still make donations on their behalf.

Contributions From Salary Sacrifice

Salary sacrifice is when you ask your employer to contribute a portion of your pre-tax salary to your super on top of what they could give you under the super guarantee.

It does, however, imply a decrease in your take-home salary. However, because the money your salary sacrifice is only taxed at 15% (or 30% of your total income reaches $250,000), most Australians will pay less tax on their salary sacrifice super contributions than they do on their income.

Contributions From Downsizers

People aged 65 and older voluntarily contribute to their super of up to $300,000 using the proceeds from the sale of their primary residence, regardless of their work status, super balance, or contributions history.

Couples can take advantage of this opportunity, which means they can contribute up to $600,000 to their superannuation. There are, however, potential benefits, laws, and other things to be aware of that you can consult with a financial adviser in Queensland.


Most super funds let you pick from various investment alternatives and asset classes, and an ideal option will be contingent on your risk tolerance and the amount of time you have to contribute.

Yes, you may have time to ride out market highs and lows if you're young and thus be ready to take on greater risk in the hopes of higher returns. If you're getting close to being able to access your super, you might want to take a more cautious approach, as a stock market meltdown could be more difficult to recover from. You may also seek advice from superannuation advisers in Australia for more information.

With the help of Swell Financial Planning, you may achieve financial stability. I will be your partner in achieving such a goal as a seasoned financial adviser in Queensland. Make an appointment so we can begin working on your finances.


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