Making additional payments (known as contributions) to your super account can make a significant difference to your financial future. Contributions from your employer alone may not be enough to fund your dream retirement, but there is a simple way for you to help it grow faster.
Compound returns are the eighth wonder of the world!
The benefit of making additional payments to your super is that you could earn returns on your investment returns, which helps your balance grow over time – and you may also be able to lower your taxable income at the same time!
There are times when the financial markets aren’t always going up, which means there may be years when your returns aren’t positive. If you have a long investment timeframe, you’re in a better position to ride out the ups and downs.
Your options to add more money to your super
Salary Sacrifice contributions – contributions set up through your employer where additional money (nominated amount by you) is paid into your super before you pay tax.
It’s important to note that the government limits the amount you can contribute to your super. If you go over the limit, you may pay additional taxes. These limits are called contribution caps. You should be aware there are different types of contribution caps that apply, please see the ATO website.
After tax contributions – these types of contributions include:
- Contributions you or your employer make from your after-tax pay
- personal contributions that are not claimed as an income tax deduction
- spouse contributions (if your partner or spouse is earning a low income or taking time off work for caring responsibilities, you can make a payment (contribution) into their account
- you should be aware there are different types of contribution caps that apply, see the ATO website.
Growing your super is easy
There are a couple of ways you can add money into your account, and you may want to take advantage of tax benefits at the same time.
Below are some of the common options:
|Ask your employer to pay Superannuation Guarantee (SG) contributions to your Australian Ethical account||
Download the Choice of Super Form, fill it our and give it to your employer
|Rollover your super from your other funds into your Australian Ethical account||Submit your request from your online account|
|Add money from your bank account by BPAY®||The BPAY biller code and your reference number is available in your online account. Click on the circle icon next to your name > Personal details and scroll to the bottom|
|Ask your employer to add some of your pay into your super (known as Salary Sacrifice)||Speak with your employer directly (HR or payroll) about setting this up. Ask them to direct a portion of your pre-tax pay to us. You may want to talk to us about the benefits of doing this.|