Extra Contributions

Your employer contributes 9%, which is a good start, but will it be enough to keep you through your retirement years?

Have you considered how much money you might need to achieve your desired lifestyle when you retire?

You can top up your super in a number of ways:

• Consolidate your other super accounts into AUST(Q) and you could save on fees.
• Salary sacrificing may reduce your tax bill.
• Voluntary contributions may give you up to $1,500 from the Government under its
  co-contribution arrangements.
• Spouse contributions may give you tax benefits.

Consolidate your super

Consolidating your super simply means rolling all your super accounts into one. Having more than one superannuation fund may mean you are paying more fees than you should be! It can also be difficult to keep track of what’s happening with your super. AUST(Q) lets you roll all your other superannuation accounts into your AUST(Q) account free of charge.

The advantages include:

• Paying one low set of fees may help the growth of your retirement benefit.
• You will know exactly where your superannuation is.
• No entry fees for rolling over a benefit into AUST(Q).

Before making a decision to consolidate your superannuation, you should consider your own circumstances, and you may wish to seek financial advice.

How?

Simply complete the Member’s Authorisation to Rollover Form in the Product Disclosure Statement and return it to AUST(Q).

Please note: You may wish to verify with your other funds any exit fees that may apply before making a decision to rollover or the effect on your insurance arrangements.

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Salary sacrifice

Salary sacrifice is pre-tax payments (or contributions) into your superannuation account. That is, your employer takes out the contribution before they apply tax to your pay. For many people this can be a tax-effective and convenient means of saving for retirement.

This method can be tax effective as pre-tax contributions are only taxed at 15%. This is a lot less than the highest income tax rate of 47% (plus Medicare levy).

How?

Simply contact your employer and discuss a salary sacrifice arrangement.

You may like to seek independent advice before salary sacrificing.

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Voluntary contributions

Voluntary contributions are post-tax payments into your superannuation account. You can make these contributions at any time into your super.

How?

You can make voluntary contributions via payroll deduction (contact your employer), direct debit or cheque. To find out more, call the AUST(Q) Customer Service Centre on (07) 3307 6444 (country callers 1800 637 698).

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Co-contribution Scheme
Established with effect from 1 July 2003, the Government co-contribution arrangements are designed to give low-income earners a boost to their super savings. Essentially the co-contribution scheme means that for every $1 you voluntarily put into super after tax, the Government will put in $1.50, up to a maximum of $1, 500 per year. The amount co-contributed by the Government is determined by your “total income” (which is defined as assessable income plus reportable fringe benefits), and operates on a sliding scale from $28,000 up to a maximum income of $58,000. Once your total income reaches $58,000 you will not be eligible for the government co-contribution. You do not need to apply for the co-contribution but you must lodge an income tax return and ensure you have supplied your Tax File Number to the Trustee. The ATO will work out if you are entitled to the co-contributions and, if applicable, it will pay it directly into your superannuation account. You must meet certain eligibility criteria to qualify for the Government co-contribution. For further information please contact the ATO on 13 10 20.
From 1 July 2004, if your personal super contribution is: $1,000 pa $800 pa $500 pa $200 pa Your ‘Total Income’: The Federal Government will contribute: $28,000 or less $1,500 $1,200 $750 $300 $30,000 $1,400 $1,200 $750 $300 $40,000 $900 $900 $750 $300 $50,000 $400 $400 $400 $300 $58,000+ $0 $0 $0 $0		For example, if you earn $30,000 ‘total income’ pa, and make a $500 voluntary contribution to super, you may* be eligible to receive a $750 co-contribution from the government. Download the Government’s brochure to find out more. *If you meet the eligibility conditions.

Eligibility

The co-contribution scheme is not available to everyone. Generally, to be eligible in a particular financial year you need to:

• Have made voluntary contributions to your super (ie. an after-tax contribution). This does not include salary sacrifice contributions, spouse contributions, employer SG contributions, or contributions for which a tax deduction has been claimed by self-employed individuals.
• Have earned a ‘total income’ of less than $58,000 before tax (individual income, not household income).
• Have been employed full-time, part-time or on a casual basis (but not wholly self-employed).
• Have been entitled to receive superannuation contributions from your employer.
• Be under 71 years of age at the end of the financial year.

How?

If you are eligible:

• Make a voluntary contribution.
• Lodge your tax return.
• The Australian Taxation Office (ATO) will determine your co-contribution entitlement.
• The Government will then pay the appropriate co-contribution amount directly to AUST(Q).

Download the Government’s brochure to find out more.

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Spouse contributions

Have you thought about contributing to your spouse’s superannuation account? AUST(Q) also accepts super contributions on behalf of a member’s spouse. A spouse for the purpose of making spouse contributions is a husband, wife or defacto (excludes same sex couples). If you make spouse contributions on behalf of your low-income or non-working spouse, you may qualify for a tax rebate. The maximum tax rebate for a year of income is $540 and is available for where a $3,000 spouse contribution has been made and your spouse’s assessable income and reportable fringe benefits is $10,800 p.a. or less. The rebate reduces by $1 for each $1 above the $10,800 and reduces to zero when your spouse’s assessable income and fringe benefits reach $13,800 p.a.

Other conditions apply. For further information please contact AUST(Q).

Eligibility

Your spouse must be under age 65, or between 65 and 70 and gainfully employed for at least 40 hours in a period of time of not more than 30 consecutive days during the financial year for contributions to be accepted for that particular year.

You must be married to or living in a de facto relationship with your spouse. A spouse must not be an employee of the contributing spouse.

In order to qualify for the full tax rebate, your spouse must have earned less than $10,800 in the financial year in which you contributed on their behalf. Or, to claim a partial rebate, your spouse must have had an income between $10,800 and $13,800. Even if you don’t qualify for a tax rebate, spouse contributions could make a big difference to your retirement savings.

How?

To open a spouse account, call us on (07) 3307 6444 (country callers 1800 637 698).

An initial contribution of $1,000 is required, however additional contributions of any amount can be made at any time.

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