Personal Superannuation Advice

Engaging with your superannuation is a priority to ensure you are maximising the benefits received from your employer contributions, personal contributions and government rebates. Financial planners can assist but taking ownership of your super is the most important thing you can do. How often do I ask, “how much to do you have in super” and the reply is “I don’t know” and yet if I ask “how much do you have in bank savings” the reply is almost certainly a figure not too far from the actual amount. By taking an interest during the accumulation stage of your super you are setting yourself up for a comfortable lifestyle when you can no longer work or have no wish to continue to work.

Knowing how super funds work can help you to understand and engage in your super more proactively. Some basic principles are:

Employer contributions or salary sacrifice contributions are known as concessional contributions and they attract a 15% contributions tax on entry to superannuation; this is because your employer has claimed a tax deduction for these contributions or the contributions are from pre-tax money as in salary sacrifice contributions. If you are a self-employed person, you can also claim a tax deduction for contributions. If you have Life and TPD insurance built into your super your fund receives a 15% tax rebate for the premiums paid for your insurance.

Non-concessional contributions are those paid into super from after tax savings so the advantage here is that the whole contribution (ie no 15% tax) is invested meaning more money in which has the potential to grow more.

Within super income-earning assets are taxed at 15% pa which is a bonus because outside of super your income-earning assets (eg bank savings or managed funds) are taxed at your marginal tax rate.

These are just some of the issues around superannuation with which a financial planner can assist you in growing your super over the long term.