It is well known that women typically accumulate less superannuation than men over their working life due to many reasons including lower salaries and working less due to family commitments.
Any initiative by Government to boost women’s superannuation will be applauded but there is a simple thing that couples can do every year to boost the superannuation balance of their spouse.
Superannuation Legislation allows members to split concessional superannuation contributions with their spouse each year. The maximum that can be split is 85% of the previous year’s concessional superannuation contributions and there is a strict time limit to effect the contribution splitting.
Concessional superannuation contributions are employer and salary sacrifice contributions for those who are employed and deductible superannuation contributions for the self employed.
If you are concerned about your superannuation balance and have a working spouse, have a think about whether it makes sense to split superannuation contributions each year to boost your superannuation balance. Additionally, look into other contribution options such as spouse contributions and personal contributions to potentially qualify for the Government co-contribution to boost your superannuation balance.
Finally, if you are looking at your superannuation contribution options, think holistically and make sure you consider if there are ways for you to tax effectively increase your current contributions.
What should you do next? It’s really simple: make contact with us to see how we can help you.
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