Grow Your Super
You’ve taken the first step by setting up your SMSF. Have you considered how you might start growing your super? A little now can make all the difference in the future.
Grow your Super
SMSFs can invest in a wide range of investments including shares, managed funds, cash deposits and property. We can also provide you with access to a Financial Planner to ensure your investments and retirement plans are moving in the right direction. Each year, we benchmark your outcomes and help you consider how to achieve your goals.
Here are some simple ways to grow your super.
You can ‘sacrifice’ a portion of your before tax salary and/or bonuses. Your employer pays it into your super on your behalf. Not only does this increase your super savings but also helps you save tax personally.
Contributions from your spouse
If you are a low income earner or do not work, your working spouse can contribute to your super. This will ensure that, even when you are not working, your super is still being added to. Additionally, your spouse may be able to claim a tax offset.
In certain circumstances, your spouse may also be able to split up to 85% of their contributions for the year to you.
Combine your Super
If you’ve lost track of your super and have multiple super accounts, you may be paying multiple sets of fees. Consider consolidating your super into the one account to keep track of it easily. There are millions of dollars’ worth of unclaimed and lost super in Australia. If you have changed addresses, jobs or names, you could be one of the hundreds of individuals able to retrieve these lost funds.
Limited Recourse Borrowing Arrangement (LRBA)
A limited recourse borrowing is an SMSF loan. The loaned funds can be used to purchase an asset held in a separate trust.
Any investment returns earned from the asset go to the SMSF trustee.
If the loan defaults, the lender’s rights are limited to the asset held in the separate trust. This means there is no recourse to the other assets held in the SMSF.
If you have a low income you can also get help from the government.
Known as the Government Co-contribution, for each $1 you add as a personal after tax contribution, the Government will match it. The maximum co-contribution is $500.
Low Income Super Contribution
If you earn less than $37,000, receive employer or concessional member contributions and meet the eligibility criteria, the ATO will automatically make a ‘low income super contribution’ of up to $500. You will get this payment whether or not you add extra money to your super.