WA Super News
Boost your super to boost your retirement
The end of 2017/18 financial year is not far way…don’t wait until June to take action on your super to boost your super balance. Here are two ways to do this:
Concessional super contributions (pre-tax)
You can agree to pay a portion of your pre-tax salary as an extra contribution to your super.
Concessional contributions are capped at $25,000 per financial year. This means the total of your employer, salary sacrificed and any employer matching contributions must not be more than $25,000 each year.
Contact your payroll person to set this up or make changes to your current pre-tax contribution arrangement.
Non- concessional super contributions (after-tax)
You can contribute your personal money that you have already paid tax on into your super.
Non-Concessional contributions are capped at $100,000 per financial year. If you are under age 65 you can bring forward up to 2 years non-concessional cap, allowing you to contribute up to $300,000 at a time, depending on your super balance.
You can either do this through your payroll or via bPay. Please login into Member Online to get your bPay details.
What’s better – pre or post tax contributions?
Whether to contribute before or after tax depends on a range of factors but the main factors are your level of income and your marginal income tax bracket.
What happens if I contribute more than the cap?
If you exceed the contribution caps you may have to pay additional tax on the excess contributions. It is a good idea to review your contributions annually or if your financial situation changes.
The work test still applies for people aged 65 to 74. To contribute to your super you’ll need to have worked for at least 40 hours over 30 consecutive days in the financial year.
How can we help?
Find out how you can optimise your WA Super contributions through our new Simple Super Advice service.
Simple Super Advice is a free advice service that offers limited personal advice to all WA Super members who want to find out how much they will need to retire on, whether they are on track to reach this and what are the options to ensure you can reach your retirement goals.
To book your appointment contact us on 08 9480 3500.