Experts say you’re missing out on valuable retirement boosts—here’s what you need to know
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When it comes to financial planning, some topics are just too important to ignore—yet many Aussies are overlooking one crucial conversation with their partners.
While it might not be the most exciting dinner table chat, the topic of superannuation could make a significant difference to your financial future.
Here’s why experts are urging couples to start talking about it today.
While it might not be the most romantic conversation, couples in Australia were urged to talk about superannuation.
Experts warned that many were missing out on valuable tax offsets and potential boosts to their retirement savings.
Spousal contributions allowed Aussies to pay into their partner’s superannuation account.
There was the possibility of claiming a tax offset of up to $540 if their spouse had a low income or was not working.
Melbourne mum-of-three Pip Thorne shared how her husband, Rob Woodside, made spousal contributions to her superannuation fund while she was on parental leave.
The now 49-year-old shared that the contributions had ‘absolutely’ made a big difference to her balance.
‘I was at home for four and a half years and we did it through the whole period,’ Thorne said.
‘Four and a half years is a long time not to be putting money into your super and it basically meant it kept ticking along. That was good for us, we were saving more as a couple and it was good for me as there was more money going into my super.’
Peter Treseder, an education manager at AustralianSuper, explained that spousal contributions were typically made when one spouse was not earning.
They were also common when one spouse was working part-time or returning to work casually after parental leave.
‘Because it’s an after-tax contribution, it goes into super tax-free,’ Treseder said.
‘And then there’s the bonus of getting a little bit back at tax time.’
For the spouse receiving the contribution, the benefits were clear as their super balance grew over time.
‘With super, the earlier you get money in, the better off you’re going to be because of the wonders of compound interest,’ Treseder noted.
How do spouse contributions work?
Contributions could be made directly to a spouse’s super, possibly entitling the contributor to a tax offset, depending on the spouse’s income.
‘The way it works is that I can get up to 18 per cent of what I contribute to my spouse, so it’s $180 for every $1,000 I make as a contribution,’ Treseder explained.
‘However, it is capped at $540, which is 18 per cent of a $3,000 contribution. So it doesn’t matter whether I put in $3,000, $5,000 or $10,000, I’m hitting that maximum top tax offset of $540.’
That meant most people simply contributed $3,000 to receive the full tax benefit, according to Treseder.
‘The government has some limits to their generosity,’ he said.
‘I’m only eligible for the full tax offset if my spouse is earning less than $37,000, that includes the spouse not working at all, and it reduces and cuts out once the spouse is earning $40,000.’
Treseder encouraged couples to discuss superannuation in order to better plan for key life milestones, such as retirement or starting a family.
AustralianSuper research showed that 82 per cent of Aussies believed discussing superannuation was important for a healthy relationship.
However, 6 per cent admitted they had never brought it up.
Nearly half of the 1,020 married and partnered Aussies surveyed did not know which super fund their partner was with.
Additionally, 55 per cent thought their partner’s super had no impact on their finances at all.
‘It’s probably not the most romantic conversation but it’s an essential conversation,’ Treseder said.
‘So I wouldn’t start my opening line about it but maybe between main course and dessert, we could swing the topic to super.’
Thorne and her husband had continued making extra contributions to her superannuation after she returned to work.
‘So many things you do with money as a couple and as a family are about looking at the whole and not looking at one or the other,’ she said.
‘Overall, we would have had less money to spend today but it meant that in the future we will have more money to be able to retire on.’
Find out how to boost your retirement with these super tips!
Do you think talking about super is important for couples? We'd love to hear your opinions in the comments!
While it might not be the most exciting dinner table chat, the topic of superannuation could make a significant difference to your financial future.
Here’s why experts are urging couples to start talking about it today.
While it might not be the most romantic conversation, couples in Australia were urged to talk about superannuation.
Experts warned that many were missing out on valuable tax offsets and potential boosts to their retirement savings.
Spousal contributions allowed Aussies to pay into their partner’s superannuation account.
There was the possibility of claiming a tax offset of up to $540 if their spouse had a low income or was not working.
Melbourne mum-of-three Pip Thorne shared how her husband, Rob Woodside, made spousal contributions to her superannuation fund while she was on parental leave.
The now 49-year-old shared that the contributions had ‘absolutely’ made a big difference to her balance.
‘I was at home for four and a half years and we did it through the whole period,’ Thorne said.
‘Four and a half years is a long time not to be putting money into your super and it basically meant it kept ticking along. That was good for us, we were saving more as a couple and it was good for me as there was more money going into my super.’
Peter Treseder, an education manager at AustralianSuper, explained that spousal contributions were typically made when one spouse was not earning.
They were also common when one spouse was working part-time or returning to work casually after parental leave.
‘Because it’s an after-tax contribution, it goes into super tax-free,’ Treseder said.
‘And then there’s the bonus of getting a little bit back at tax time.’
For the spouse receiving the contribution, the benefits were clear as their super balance grew over time.
‘With super, the earlier you get money in, the better off you’re going to be because of the wonders of compound interest,’ Treseder noted.
How do spouse contributions work?
Contributions could be made directly to a spouse’s super, possibly entitling the contributor to a tax offset, depending on the spouse’s income.
‘The way it works is that I can get up to 18 per cent of what I contribute to my spouse, so it’s $180 for every $1,000 I make as a contribution,’ Treseder explained.
‘However, it is capped at $540, which is 18 per cent of a $3,000 contribution. So it doesn’t matter whether I put in $3,000, $5,000 or $10,000, I’m hitting that maximum top tax offset of $540.’
That meant most people simply contributed $3,000 to receive the full tax benefit, according to Treseder.
‘The government has some limits to their generosity,’ he said.
‘I’m only eligible for the full tax offset if my spouse is earning less than $37,000, that includes the spouse not working at all, and it reduces and cuts out once the spouse is earning $40,000.’
Treseder encouraged couples to discuss superannuation in order to better plan for key life milestones, such as retirement or starting a family.
AustralianSuper research showed that 82 per cent of Aussies believed discussing superannuation was important for a healthy relationship.
However, 6 per cent admitted they had never brought it up.
Nearly half of the 1,020 married and partnered Aussies surveyed did not know which super fund their partner was with.
Additionally, 55 per cent thought their partner’s super had no impact on their finances at all.
‘It’s probably not the most romantic conversation but it’s an essential conversation,’ Treseder said.
‘So I wouldn’t start my opening line about it but maybe between main course and dessert, we could swing the topic to super.’
Thorne and her husband had continued making extra contributions to her superannuation after she returned to work.
‘So many things you do with money as a couple and as a family are about looking at the whole and not looking at one or the other,’ she said.
‘Overall, we would have had less money to spend today but it meant that in the future we will have more money to be able to retire on.’
Find out how to boost your retirement with these super tips!
- Super funds step in to provide affordable financial advice for Australians’ retirement
- Is your super fund performing well? These new laws may protect your retirement dreams!
- Maximise your retirement funds with the latest superannuation reforms! Here's what we know so far
- Are you overpaying superannuation tax? Find out how many Aussies are missing out on savings
Do you think talking about super is important for couples? We'd love to hear your opinions in the comments!
