Contribute like a Superwoman

If you earn less than $61,920 a year, you may benefit from the Federal Government's co-contribution scheme. Every dollar that a "low to middle-income" earner contributes to their superannuation account is matched by the Government, up to a maximum limit determined by the person’s earnings. The maximum annual co-contribution amount is $1,000 and is available to people earning less than $31,920. As income increases, the maximum amount the Government will contribute decreases, tapering off entirely when yearly income reaches $61,920. Among other conditions, the individual's contribution must come from their after-tax income. View our fact sheet to check if you are eligible.

Another way to increase your Super contribution is to allocate some of your pay to go into your superannuation fund before you get it into your pay packet. This means that, unlike the co-contribution scheme, contributions into the fund are made before your pay is taxed. Contributions made this way are taxed at 15% on entry to the superannuation fund, instead of the income tax rate you would pay if you received the money as salary. The tax benefit means the pay you take home will reduce by less than the net amount you have contributed to super, as long as your income tax rate is more than 15%.

To build up your financial security later in life – especially if you are on maternity leave or if you're a stay-at-home mum or dad – you can opt to have your spouse contribute superannuation in your name. A tax rebate of up to $540 is payable to a person who contributes to the account of their non-working spouse or a spouse who earns less than $13,800 a year. To get the maximum rebate, a contribution of $3,000 is required, and the spouse receiving the contribution must earn less than $10,800 in the financial year. While it is known as the 'spouse' rebate, a long term, live-in partner in a bona fide domestic relationship can qualify for this scheme.

Superannuation fund members can split their compulsory and personal salary sacrifice superannuation contributions with their spouse, enabling spouses to receive part of the contribution. This scheme can produce a fairer situation for spouses as well as having some tax benefits. In cases where one partner does unpaid labour in the home while the other partner does paid work, both are working for the benefit of a relationship. Splitting superannuation lets the couple share money as equally as they share the benefits of one partner's domestic labour. Also, splitting superannuation contributions can make better use of the tax-free thresholds that apply to superannuation benefits at retirement.