When you’re young and carefree, superannuation is the last thing on your mind. You might be too busy scrounging up money to tick off your travel bucket list. But making little sacrifices now could mean big rewards in the future.
Contributing to super can be a great way to lower your taxable income, save money in the long run, and work towards a more comfortable retirement. You might just have to give up the occasional smashed avo toast (Just kidding, we’d never expect you to do that).
You should discuss any potential tax and super strategies with your accountant or financial adviser.
Adulting 101: Superannuation
Hold on to your matcha latte, because things are about to get exciting.
There are two types of super contribution:
- Pre-tax contributions or concessional contributions.
- Personal after-tax contributions or non-concessional contributions.
Generally pre-tax contributions are paid by your employer as compulsory employer superannuation contributions. However these contributions might not be enough for a comfortable retirement, so some people make additional pre-tax contributions via salary sacrificing or personal after-tax contributions as well.
Still with us?
To make pre-tax contributions via salary sacrificing, you should talk to your employer to see if this is available to you.
To make an after-tax contribution, you should:
- Check the information about the Eligibility to Claim a Deduction on the ATO website to ensure you qualify; and
- then submit a “Notice of intent to claim or vary a deduction for personal super contributions form” (Notice of Intention to Claim a Deduction form) with your super fund before the end of the financial year. Your super fund will send a written acknowledgment confirming they have received your valid Notice of Intention to Claim a Deduction form. You must receive this acknowledgment from your super fund before you claim a deduction in your tax return.
Whew, nearly there. You’re doing great.
Crack the code on your super
Now we love true crime podcasts as much as the next person, but we still believe that your super shouldn’t be a big mystery. With ING Living Super, you can check your super balance online or over the phone, just like checking the balance of your other ING bank accounts.
No, we’re not talking about Tinder, but there’s another suggestion you might want to swipe right on. If you earn between $37,697 to $52,697 in FY 2018/2019, meet the relevant eligibility criteria, have made one or more eligible personal super contributions during the financial year and lodged your tax return for the relevant financial year, you can be eligible for a government super co-contribution. Relevant eligibility criteria can be found at the ATO website.
The information is current as at publication and does not constitute tax advice. Any advice on this website is general information only and website does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. You should discuss any potential tax and super strategies with your accountant or financial adviser.
ING Living Super (which is part of the ING Superannuation Fund ABN 13 355 603 448) is issued by Diversa Trustees Limited ABN 49 006 421 638, AFSL 235153 RSE L0000635 and the issuer of interests in the Fund. ING Living Super is a product issued out of the Fund. ING, a business name of ING Bank (Australia) Limited ABN 24 000 893 292, AFSL 229823, is the Promoter of the Fund.
You should consider the Product Disclosure Statement, Product Guide and Financial Services Guide available at ing.com.au when deciding whether to acquire, or to continue to hold, the product.
Living Super is not available for U.S. Persons (i.e. if you have U.S. residential, postal or fiscal address, phone number, citizenship, Green Card or any U.S. related proxy.
Before interacting with us via our social media platforms, please take a minute to familiarise yourself with our Social Media User Terms https://www.ing.com.au/pdf/Social_Media_User_Terms.pdf.
The information is current as at publication. Any advice on this website does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. Deposit products, savings products, credit card and home loan products are issued by ING, a business name of ING Bank (Australia) Limited ABN 24 000 893 292, AFSL and Australian Credit Licence 229823. ING Living Super (which is part of the ING Superannuation Fund ABN 13 355 603 448) is issued by Diversa Trustees Limited ABN 49 006 421 638, AFSL 235153 RSE L0000635. The insurance cover offered by ING Living Super is provided by Metlife Insurance Limited ABN 75 004 274 882, AFSL 238096. ING Insurance is issued by Auto & General Insurance Company Limited (AGIC) ABN 42 111 586 353 AFSL Licence No 285571 as insurer. It is distributed by Auto & General Services Pty Ltd (AGS) ABN 61 003 617 909 AFSL 241411 and by ING as an Authorised Representative AR 1247634 of AGS. All applications for credit are subject to ING's credit approval criteria, and fees and charges apply. You should consider the relevant Product Disclosure Statement, Terms and Conditions, Fees and Limits Schedule, Financial Services Guide, Key Facts Sheet and Credit Guide available at ing.com.au when deciding whether to acquire, or to continue to hold, a product. Before interacting with us via our social media platforms, please take a minute to familiarise yourself with our Social Media User Terms https://www.ing.com.au/pdf/Social_Media_User_Terms.pdf.