Research suggests the lifestyle that most Australians desire is likely to be unmet by their superannuation savings. Hence it is likely that you will need to cutback on your retirement plans to make sure your savings last the distance. You can make a difference, and you can do this by taking advantage of a number of options available to boost your super. As always, the earlier the better.
1 – SALARY SACRIFICE CONTRIBUTIONS
Salary Sacrifice is just as the term suggests, you’re sacrificing your salary – where instead of receiving your salary in your pocket today, you request for it to be added to your super. These contributions are also known as ‘pre-tax’ contributions and like your regular super guarantee contributions, these salary sacrifice contributions will be taxed at 15%, making it a tax-effective way to save for your super. It’s important to remember that there is a cap on your pre-tax contributions of $25,000 – these includes your employer Super Guarantee as well. For example, if you receive super $10,000 of super from your employer this financial year, you can add a maximum of $15,000 of pre-tax contributions to your account.
2 – LOW-INCOME SUPER TAX OFFSET
If your annual income is $37,000 or less, and you or your employer made additional voluntary contributions to your super, you may be eligible for a tax refund of up to $500 into your super account. If you are eligible for the Low-income super tax offset, the ATO should automatically calculate it and deposit it in your super account.
3 – PERSON CONTRIBUTIONS
Personal contributions (or member contributions) are another way to add to your super – especially, if you’re self-employed or out of work for the time being. These contributions are also known as ‘after-tax’ contributions, which means that these contributions have already been taxed at your personal marginal tax rate, so these contributions won’t be taxed again when they enter your account. You can make a maximum of $100,000 of after-tax contributions per financial year.
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Talal currently serves as a Non-Executive Director on the Whitlam Institute and Western Sydney University Foundation Council Board. He also serves as Chairman of First Quay Capital and Chairman of the Australian Arab Dialogue. Talal has also served on the Australia Post, Board of Sydney Ports, Macquarie University and the Western Sydney Area Health Service and the Chairman of the Department of Foreign Affairs and Trade; Council of Australia Arab Relations. In an executive capacity, Talal spent 10 years at PwC as a director and strategist, and at investment firm Babcock & Brown in the Corporate Finance Group and later in the Technical Real Estate Division. Later Talal held leadership positions in Better Place Australia, Platinum Hearing and Star Transport Australia.