If you are earning a good income and your spouse is not working or earns less than $37,000 a year by doing part-time or casual work, there are a few financial strategies you can use to boost your super and pay less tax.
- Spouse super contribution: you can contribute up to $3,000 to spouse’s super account, and get $540 tax offset
- Super co-contribution: your spouse can self contribute $1,000 into her/his super account, and he/she will receive another $500 in super contributed by government
- You can make salary sacrifice to your own super to boost your retirement savings and get tax deduction up to total $25,000 a year (including your employer contributions)
If you are eligible to take first two together, that is 26% net investment return, which is higher than any superannuation investment return in any year. If your personal tax rate is 37% or plus, since contributions into super will only be charged 15% tax (if you earn less than $250,0000 p.a.) you will be saving 22% or more.