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Getting your super in shape
Five tips for a super New Year
Year after year we make resolutions to exercise more, eat better or get our super in shape. Often one of the keys to success is getting a head start to the year with a few "quick wins". Getting your super in shape is no different.
By completing one or more of the items listed below you could save time, money or tax dollars and kick-start a super new year.
1. Check that you've given us your Tax File Number (TFN)
If you haven't given us your TFN then you are likely paying more tax than you need to. Any salary sacrifice or employer contributions will be charged at your marginal rate of tax (up to 45%) instead of 15%. Additionally, you won't be eligible to make after-tax contributions nor can you avail of the Government co-contribution scheme.
What to do
Log in to your account and provide us with your TFN. If you don't know your TFN contact the Australian Tax Office first.
2. Combine your super accounts
Consolidating you super is one of the best ways to save money as you can potentially save thousands of dollars on multiple sets of fees over the lifetime of your super. By having your super in one, easy to access fund keeping track of your super money will be a lot easier too.
What to do
Complete a rollover form now and we’ll do the rest. Don’t forget to track down any lost super through the ATO’s SuperSeeker service or call 13 28 65.
3. Nominate who should receive your super benefits
if you die
By nominating your beneficiaries your superannuation can be paid to your loved ones without going through your Will or Estate, and most likely reach them faster. So, it’s important to consider who your nominated beneficiaries are and that you keep your nomination up-to-date especially if your circumstances change, for example, if you re-marry, have another child or an existing beneficiary dies.
What to do
Log in to your account to nominate your beneficiaries now.
4. Top-up your super with extra contributions
Not only will you increase your future retirement pot but you will likely save some precious tax dollars. Contributions and earnings inside super are taxed at a maximum of 15% whereas investing outside of super generally attracts tax at marginal rates, which for most people is greater than 15%.
What to do
Ask your employer to salary sacrifice some of your before-tax pay into your super. This is called a concessional contribution.
Top up your super from your after-tax pay or other money you have. You can do this through BPAY, telephone or internet banking, or by asking your payroll to do it on your behalf.
Learn more about before and after-tax contributions, and how to contribute
5. Important: Know your contribution limits and avoid
paying a penalty tax
If you make additional contributions to your super or if you’re on a high income it’s very important to be aware that there is a cap (limit) on how much you can contribute before incurring an extra (penalty) tax.
What to do
Calculate how much you will contribute to super this financial year both before and after tax. If you contribute to more than one super fund include those contributions too. Check you don’t exceed any of the caps below:
| 2011/2012 contribution caps for individuals | |
| Concessional contributions | Non-concessional contributions |
|
» $25,000 for individuals under age 50 » $50,000 for individuals over age 50. |
» $150,000 for all individuals » $450,000 in total over the next three financial years if you are under age 65 at the time of the contribution. |
| Concessional contributions include: | Non-concessional (after-tax) contributions include: |
| » compulsory employer super guarantee (SG) » salary sacrifice arrangements. |
» contributions made from your own money after tax has been paid » spouse contributions » Government co-contribution. |
Learn more about contribution limits and the penalty taxes that apply.
Need more information or advice?
Contact your financial adviser or speak to a member of our Helpline team if you need more information about how to implement the above tips. If you would like to speak to a financial adviser we can help you find an adviser in your area, simply call the Helpline on 1800 555 667.