SUPPERANNUATION
Contributing to Your Super
Contributing to superannuation can be done is several ways, however care needs to be taken that you do not breach any contribution caps or limits.
Most modern superannuation funds or platform have access to the BPay and Direct Credit banking systems, that enable you fast access to making contributions, also with the advent of SuperStream employer contributions are much faster to reach you superannuation fund.
(note that an employer only needs to make the superannuation contribution every quarter regardless of how frequently you get paid)
SG Contribution (work)
This is the government-mandated super contribution required to be made by your employer. Currently 9.50% (as at 01/07/2014), there were plans for this rate to be increased gradually, however, that has now been placed on hold.
Award/Other Contribution (work)
Some employment arrangements have additional contributions being made by your employer above and beyond the normal SG Contribution based on the negotiated contract or award.
Also possible, is some employment contracts allow for matching contributions, for example, you add an extra 5.00% then the employer will add a bonus 2.50%.
Salary Sacrifice (work)
Some employers offer their staff the ability to salary package items including superannuation contributions. Basically, your employer takes extra superannuation contributions from your wage before tax. This potentially allows you to save tax and build your super balance much faster.
provided by MLC 201806
provided by MLC 201806
Personal Contribution - Deductable
You may personally make cash contributions from your own funds which you then claim as a tax deduction for the financial year. This method was once reserved for only the self-employed and those that satisfied the 10% test, but it has since expanded to include employees.
Personal Contribution - Undeducted
This is a standard superannuation cash contribution from your own funds after tax.
provided by MLC 201806
provided by MLC 201806
Spouse Contribution
Under certain conditions it is possible for a spouse to contribute to your superannuation fund and they may be able to claim a tax deduction.
Co-Contribution
Under certain conditions it is possible for you to make personal contributions and then at the end of each year the government will add / match a co-contribution. Please note that this free contrbution has been almost died, but has managed to survive many attempts on its life.
provided by MLC 201806