Could a $500 super boost be yours this tax time? Find out if you're eligible!
- Replies 4
The end of the financial year can often be a downer for some Aussies, as it means grappling with the complexities of tax returns and relevant paperwork. However, this year may bring some good news for certain Australian workers, including many seniors here at the Seniors Discount Club!
Some low and middle-income Australian workers may be eligible for a $500 super boost to their nest egg, courtesy of the government’s super co-contribution scheme. What exactly is the super co-contribution scheme, you ask? Well, it's an initiative designed to assist eligible workers by matching their voluntary contributions made to their super funds, up to a maximum government co-contribution of $500. So, not only can you feel good about saving for your future, but the government will also chip in to help you along the way.
UniSuper advice Technical and Strategy lead Brooke Logan says that many Australians may not be aware of these small tweaks they can make to their financial plans for significant benefits in retirement.
‘Not everyone is aware of these little tweaks you can make to your financial plan which will ultimately benefit you and your family in retirement,’ Brooke said.
Brooke suggested that casual, part-time, and other low income-earners should consider making an after-tax contribution of up to $1000 to their super fund to qualify for a government co-contribution.
Moreover, those saving for their first home can make voluntary contributions to their super fund to potentially get a massive $50,000 tax break. ‘The First Home Super Saver Scheme allows you to release up to $15,000 of voluntary contributions from any one year, up to a total of $50,000 contributions, to help with the purchase of your new home,’ Brooke explained.
For individuals whose spouse earns less than $40,000 a year, Brooke suggested making an after-tax contribution of up to $3,000 to their super fund.
Additionally, Australians of all ages, including seniors, should also consider personal deductible contributions. ‘You may be able to claim a tax deduction for personal super contributions made to your fund sourced from after-tax income,’ Brooke said.
This could be especially useful for our SDC members looking to optimise their super balances before retirement. People with less than $500,000 in their super may be able to make additional super contributions using any unused concessional cap from the previous five years.
Now, we'd like to share a couple of tips on how seniors can make the most of their superannuation savings:
1. Consolidate multiple super accounts to save on fees and make it easier to manage your retirement funds.
2. Take advantage of government incentives, like the super co-contribution scheme and the First Home Super Saver Scheme mentioned earlier.
3. Adjust your investment options based on your risk appetite and retirement goals.
Of course, we always suggest that you have a chat with a financial advisor or tax expert to discuss the full details of your individual circumstances and explore all relevant options.
In the meantime, let's all dream about what we'd do with that extra $500 super boost to help us enjoy our golden years! So why not share your thoughts with us and the SDC community – what would you do if you found yourself with a handy $500 super boost this tax time? We'd love to hear your thoughts in the comments section below.
It’s tax time for us Aussies! Image source: Unsplash.
Some low and middle-income Australian workers may be eligible for a $500 super boost to their nest egg, courtesy of the government’s super co-contribution scheme. What exactly is the super co-contribution scheme, you ask? Well, it's an initiative designed to assist eligible workers by matching their voluntary contributions made to their super funds, up to a maximum government co-contribution of $500. So, not only can you feel good about saving for your future, but the government will also chip in to help you along the way.
UniSuper advice Technical and Strategy lead Brooke Logan says that many Australians may not be aware of these small tweaks they can make to their financial plans for significant benefits in retirement.
‘Not everyone is aware of these little tweaks you can make to your financial plan which will ultimately benefit you and your family in retirement,’ Brooke said.
Brooke suggested that casual, part-time, and other low income-earners should consider making an after-tax contribution of up to $1000 to their super fund to qualify for a government co-contribution.
Moreover, those saving for their first home can make voluntary contributions to their super fund to potentially get a massive $50,000 tax break. ‘The First Home Super Saver Scheme allows you to release up to $15,000 of voluntary contributions from any one year, up to a total of $50,000 contributions, to help with the purchase of your new home,’ Brooke explained.
For individuals whose spouse earns less than $40,000 a year, Brooke suggested making an after-tax contribution of up to $3,000 to their super fund.
Additionally, Australians of all ages, including seniors, should also consider personal deductible contributions. ‘You may be able to claim a tax deduction for personal super contributions made to your fund sourced from after-tax income,’ Brooke said.
This could be especially useful for our SDC members looking to optimise their super balances before retirement. People with less than $500,000 in their super may be able to make additional super contributions using any unused concessional cap from the previous five years.
Now, we'd like to share a couple of tips on how seniors can make the most of their superannuation savings:
1. Consolidate multiple super accounts to save on fees and make it easier to manage your retirement funds.
2. Take advantage of government incentives, like the super co-contribution scheme and the First Home Super Saver Scheme mentioned earlier.
3. Adjust your investment options based on your risk appetite and retirement goals.
Of course, we always suggest that you have a chat with a financial advisor or tax expert to discuss the full details of your individual circumstances and explore all relevant options.
In the meantime, let's all dream about what we'd do with that extra $500 super boost to help us enjoy our golden years! So why not share your thoughts with us and the SDC community – what would you do if you found yourself with a handy $500 super boost this tax time? We'd love to hear your thoughts in the comments section below.
.png){kind=icon}
