Our location
- Unit 3 / 3 Fermont Street,
Underwood, QLD 4119 - Po Box 36, Underwood, QLD 4119
Maximise your superannuation benefits with expert advice.
Contributing to Superannuation
Concessional Contributions
This type of contribution is made with before tax income and is then taxed at 15% in your super fund. Examples of these concessional contributions are:
- compulsory employer superannuation guarantee contributions,
- salary sacrifice arrangements, and
- any personal super contributions that you claim as a tax deduction.
Non-Concessional Contributions
This type of contribution is made from after tax income and is not taxed in your superannuation account. Examples of these non-concessional contributions are:
- voluntary additional payments made from your take-home pay,
- any made on behalf of your spouse (married or de facto),
- a government co-contribution, and
- the Low Income Super Tax Offset (LISTO).
Please note there are annual limits (known as ‘caps’) on both concessional and non-concessional contributions. You can be liable to pay extra tax if you exceed these limits
Early Release of Superannuation
As superannuation is forced retirement savings, it is designed not to be accessed until you reach preservation age (60 years of age). However, there are a small number of reasons you can gain access to your superannuation before you retire. Seeking superannuation advice from a professional can help you understand the implications and alternatives to accessing your super early.
Generally, we would recommend budgeting and cash flow management first. A lot of the time, we do not know where all our money is being spent. Writing everything down and accessing what is critical and what is not can have the desired result. Utilising your superannuation should be the last resort.
Salary Sacrifice
Salary sacrificing is when employees choose to set up these types of arrangements with their employer. The employee forgoes part of their salary or wages to help pay for a range of benefits like cars, school fees or extra super contributions. To make the most of this strategy, it’s important to seek superannuation advice from a professional who can guide you on the best approach for your situation.
To sacrifice some of your salary into your super account, you make an agreement with your employer for them to pay some of your salary straight into your super fund rather than into your bank account with the rest of your salary. This means the money going into your super account is from your pre-tax salary.
