A. Congratulations on your new arrival, Rachel! You’ve likely been off work for at least a little while, so it’s great you want to focus on topping up your super.
The good news is you can grow your super, even while you’re working part-time. Every little bit counts and can make a big difference to the amount you have when you retire.
Here are just a couple of ways you can grow your super:
Get extra money from the Government
For every $1 you put into super from after-tax income, the Government will chip in 50 cents. As you’re earning under $36,813, you’re eligible for the full Government co-contribution amount of $500 per year. So, if you add an extra $1,000 per year of after-tax money into your super, you’ll get a co-contribution of $500.
Plus, you could also benefit from the Government’s Low Income Super Tax Offset (LISTO). The LISTO is a payment for eligible people earning under $37,000 that ‘pays back’ the 15% tax they’ve paid on super contributions for the year (up to $500).
Ask your spouse to make contributions
If you have a spouse or partner, you can ask them to put money into your super. For any amount your spouse adds to your super, up to a maximum of $3,000 per year, they’ll get an 18% tax offset. So if they contribute $3,000 to your super, they’ll be eligible for a $540 tax offset. It’s important to note that any spouse contribution amount counts towards your spouse’s annual pre-tax contributions cap of $25,000. And, if you have a super balance over $1.6 million, you won’t be eligible for spouse contributions.
Find out more
You can find out about super contributions, including eligibility and how to get started here.
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The information provided is of a general nature and does not take into account any person’s specific needs or personal situation. You should assess your financial position and personal objectives before making a decision based on this information. We also recommend that you seek advice from a licensed financial adviser.