Could bolstering your superannuation save you on tax?

More than 50% of Aussies have a “set and forget” mentality when it comes to their superannuation, according to new  research from UniSuper. 

Meanwhile, nearly two thirds are “comfortable” with their retirement management plan according to the 1,000 respondents UniSuper surveyed.

Such inattentiveness could cost the average punter tens of thousands of dollars by the time they reach the retirement age, according to the super fund. 

On the other hand, bolstering your super balance with an after-tax contribution – even if only by a few hundred dollars – could prove worthwhile.

How to get $500 co-contribution from the government

The government has offered to co-contribute as much as $500 to some low income earners, UniSuper Advice Technical and Strategy Lead Brooke Logan points out.

To be eligible for a co-contribution in the financial year 2022/2023, a person must have earned more than $42,016 and less than $57,016 this financial year. 

They must have also contributed between $20 and $1,000 from their post-tax income to their super. 

You might also be able to claim a tax deduction for any super contributions you’ve made over the fiscal year.

"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," Ms Logan said.

Two more ways to bolster your retirement while saving tax

Director of Tax Communications at H&R Block Mark Chapman has outlined two more benefits one might realise from adding to their super balance before the end of the fiscal year.

The first could be helpful for single-income families or those with a clear breadwinner.

“You could claim a tax offset if you make an eligible super contribution on behalf of your spouse,” Mr Chapman told savings.com.au. 

If your spouse earns less than $37,000 and you contribute at least $3,000 into their super, you might qualify for a maximum $540 tax offset.

You might also be eligible for a smaller offset if you contribute less than $3,000 and your spouse earns between $37,000 and $40,000, according to the expert.

Chapman’s second tip could be a winner for low-income Australians. 

“If you earn $37,000 or less a year, you could receive a low income super tax offset of up to $500,” he said.

To receive the offset, your super fund must have your tax file number on record. You also need to lodge your tax return so the ATO can work out your offset payment.

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