Published 24 February 2021
If you are working, your employer regularly pays into your superannuation. Generally, they are required by law to pay 9.5% of your salary into your super¹.
You may also be benefiting from additional employer contributions as part of your salary package.
Your employer’s contributions can help you to grow your retirement savings over the long-term. But is this going to be enough to fund a comfortable lifestyle after you stop working?
It may be worth considering other ways to put money into your super. This article explores the different ways that you can give your super a boost.
Salary sacrifice is when you and your employer agree to make an additional contribution to your superannuation from your before-tax pay. This type of contribution is taxed at 15% and is also referred to as a concessional contribution.
You may benefit from salary sacrificing if your marginal tax rate is higher than 15% (which typically applies for annual salaries over $37,000). If this is the case for you, then salary sacrificing could help reduce the amount of tax paid while growing your super account.
If you are interested in setting up a salary sacrifice, talk to your workplace’s HR or payroll team. For further information, you can refer to our salary sacrifice info sheet or call us on 1800 444 396.
You can grow your super by making personal contributions. This is money you choose to pay into your super from your after-tax income – they are also referred to as non-concessional contributions.
There are limits to how much you can contribute in this way during the financial year. We explain more about contribution caps later in this article.
Anyone aged 66 years and under can make personal contributions into super. People aged 67 to 74 years can pay into super if working at least 40 hours over a consecutive 30-day period in the financial year.
For further information, you can refer to our ways to grow your super info sheet or call us on 1800 444 396.
You may be entitled to a tax deduction for personal contributions – refer to our tax deduction for personal contributions fact sheet.
You may be benefiting from additional employer contributions as part of your salary package, on top of your 9.5% Superannuation Guarantee.
If you are, it’s worth checking if your employer is making these contributions before or after tax.
Everyone’s situation is different, and the most tax-effective approach will depend on your salary level. Finding the best way to receive additional contributions could make it quicker to grow your super.
If you need to discuss your additional employer contributions, contact your HR or Payroll team, or call LGIAsuper on 1800 444 396.
Here are some other ways of making additional contributions into super:
There are annual limits to how much you can contribute to your super. These are your contribution caps, and you may have to pay extra tax and a fee if you exceed them.
There are caps for both types of contribution:
Further information about both types is available in our contribution caps info sheet.
During the financial year, we recommend you check that you are staying under your contribution caps.
The quickest and easiest way to check your contribution caps is to log in to Member Online. Your account will display your contribution totals and caps for the financial year.
Alternatively, you can contact us on 1800 444 396, and we can provide this information to you.
Details about all these additional contributions are in our ways to grow your super info sheet.
Our team of superannuation specialists and financial advisers can also help you discover the best way to grow your savings.
We offer our members Super Health Check appointments over the phone or video call, at no additional cost. We look at your superannuation account, discuss different ways to grow it, and check that you are on track for a comfortable retirement.
Our financial advice service² can help you plan for a better financial future. LGIAsuper members can receive limited advice on a single topic related to superannuation, such as salary sacrificing. More comprehensive financial advice is also available, and fees will vary depending on the type and complexity of advice.
Call us on 1800 444 396 to discuss the type of appointment that would suit you best.
LGIAsuper has engaged Industry Fund Services Limited (IFS) ABN 54 007 016 195 AFSL No 232514 to facilitate the provision of financial advice to members of LGIAsuper. LGIAsuper Financial Advisers are Authorised Representatives of IFS.