Pay more super and less tax

It’s not just high-income earners who can benefit from tax-effective and top-up super strategies. 

“There are many strategies that have been specifically designed to boost the super balances of low to middle income earners,” says TelstraSuper Financial Planning Financial Adviser Caroline Rees.

And you don’t have to be a high-income earner to benefit from salary sacrificing into super. If you're earning over $45,000 per annum, the personal tax rate on some of your salary is 32.5%*. Generally, pre-tax super contributions are only taxed at 15%**. 

“By asking your employer to deduct a bit of money from your pay into super, you can potentially lower your taxable income, save on the tax you pay,” says Ms Rees. 

There are eligibility conditions and it’s important to note that any contributions made through a salary sacrifice arrangement will count towards your concessional (pre-tax) contributions cap of $27,500^. 

ABOUT SALARY SACRIFICE  

Pick a fund that puts you first

While all super funds have fees, the way they use those fees can differ. Check whether your fund is a profit-to-member fund, like TelstraSuper, or a for-profit fund which will pass on a portion of its profits to shareholders. 

TelstraSuper Financial Planning Adviser Rebecca Cheevers says that checking your fund’s net investment performance is also important – since looking at returns and fees separately doesn’t always tell the full story.

“Picking a fund with the best investment returns can be less effective if the fees are really high” says Ms Cheevers. “Consider the returns minus fees and costs such as administration, investment and insurance fees and costs of the products offered – that’s what is going to make the biggest difference to your super balance.” 

Combine your multiple super accounts

According to the Australian Tax Office, there are still about three million Australians holding two or more super accounts, including those holding duplicate accounts within the same fund. 

As TelstraSuper Financial Planning Financial Adviser Belinda Wheeley-Lea points out, this can result in super fund members unintentionally paying multiple sets of fees, including insurance premiums, which can significantly erode their super balance over time. 

“Having just one super account means one set of fees and makes managing your superannuation easier. It could make a big difference to your final balance for retirement,” says Ms Wheeley-Lea. 

The good news is that you can combine your super easily via MyGov or contact your preferred super fund for help. 

COMBINE WITH TELSTRASUPER

Want to get the most from your money?

TelstraSuper has over 30 years’ experience in providing leading employer superannuation services. We are a profit-to-member super fund that is open for all employers and employees to join. 

When your business partners with TelstraSuper, we stive to make meeting your super obligations easy, so you can spend less time on admin and more time running your business. 

Our offering makes managing super simpler. From ongoing administration support, a clearing house option, educational seminars, topical articles, and helpful online tools and calculators – TelstraSuper empowers employers and employees to make informed decisions and take control of their futures. 

Talk to one of our employer specialists on 1300 554 889 to find out how we make super simpler for your business or visit the link below.

telstrasuper.com.au/employers