When you reach preservation age (between 55 and 60 years of age) you can potentially access some benefits. The preservation age will depend on the year you were born.
From preservation age to age 65, you can either start a TRIS and access up to 10% of your super balance each year. If you are no longer working, or working less than 10 hours a week you may be able to fully access your funds.
When you reach 65 you have freedom in accessing your funds whether you are still working or not.
This is a complex matter, which you would not want to get wrong. It is best to make an appointment to discuss this with one of our Licensed Financial Advisors, before commencing any withdrawals.
An Electronic Service Address (ESA) is effectively the name of a "virtual post office" that will receive your SuperStream data. The SMSF's ABN is used as the "virtual post box" number for holding the messages for a specific fund. As long as an employer knows a fund's ABN and ESA then they can send SuperStream messages. If you need assistance in this matter please contact Vanessa at our office.
For the 2020 Financial Year your maximum concessional contribution is $25,000.
Advice is always beneficial to maximise the tax deductibility of superannuation contributions. There are many rules distinguishing between different types of contributions and different entities which may make tax deductible superannuation contributions.
It is critical that a super fund trust deed is regularly updated to comply with the ever changing legislation and to adhere to the legal requirements of the Australian Tax Office. Simply put, if the deed does not keep up with legislative changes then your fund runs the risk of either missing out on opportunities resulting from legislative change or becoming a non complying fund and paying more tax than necessary.
You may be able to top up your super before tax in 2 ways:
By arranging with your employer to forego part of your future before-tax salary in return for your employer making a contribution to super of a similar value. This is a concessional contribution known as ‘salary sacrificing’.
By making a personal concessional contribution into your Super Fund
You may also be able to top up your super after tax by making personal (or non-concessional) contributions.
These can be one-off payments or regular contributions, and can be made via BPAY, Direct debit or Payroll directions. Find out more about growing your super, by contacting our Superannuation specialist Angela Reissis on (03) 9744 7144.
Unfortunately, there’s no single answer to this question however there is a simple answer to this question.
You will want to have a superannuation balance that allows you to retire to the lifestyle you want - we can retire from work OR we can retire to a new way of life and lifestyle and, in part, your superannuation balance will determine that new way of life and lifestyle. The ASFA Retirement Standard benchmarks the annual budget needed by Australians to fund either a comfortable or modest standard of living in the post-work years however, whilst these benchmarks can be useful it's important to remember that it's your retirement and not a "standard retirement".
Our financial planning team are committed to helping you build towards that lifestyle through your working life and then continuing that journey through your retirement so you can have the best chance of having the lifestyle you would like and leaving a legacy that satisfies your desires.
Salary sacrificing is an arrangement between you and your employer where you pay for some items or services straight from your pre-tax salary. You can salary package computers, cars, childcare and super, to name a few. This can reduce your taxable income and put more money in your pocket.
Your employer then has to pay fringe benefits tax (FBT) on the benefits provided to you. Some of these benefits will be listed on your end of year payment summary and are used to assess your Medicare levy surcharge, tax offsets, child support payments and other government benefits.
You must enter into a salary sacrificing arrangement before you earn the income. It can never be retrospective.
Who can salary sacrifice?
You can salary package if your employer is willing to offer benefits. Most employers will offer salary sacrifice into super to all employees, but may restrict who can package other benefits. Ask your employer what they offer.
Salary sacrificing is usually more effective for people on mid to high incomes.
Fringe benefits can include:
Salary sacrifice cars
Loans (usually for a car)
Childcare feesOther personal expenses
The value of the benefits you receive each financial year will appear on your payment summary at tax time. You will not have to pay tax or Medicare levy on this amount.
There are also some benefits such as entertainment and car parking that will not appear on your end of year payment summary. These are called non-reportable fringe benefits.
Exempt fringe benefits are benefits you receive that will not be included in your payment summary. Your employer will not have to pay fringe benefits tax on these.
Exempt benefits include:
Portable electronic devices
Tools of the trade
Salary sacrifice super
Redirecting some of your pre-tax income into super has benefits for you and your employer. These salary sacrificed contributions will be taxed by the super fund at 15%, the same as your employer's contributions.
For most people this will be lower than their marginal tax rate. Your employer is not required to pay fringe benefits tax on super.
When someone dies, it can be a tough time for the family - emotionally and financially. Disputes over money can drive families apart.
Spend a few minutes filling in the form saying where your money should go if you die. This will give comfort for you and your family, and avoid confusion and delays at the worst possible time.
If you die, your super fund trustee normally pays your death benefit to one or more of your dependants or to your estate.
Update your nominations if your marital status changes or you have children.
For super death benefits, the term 'dependants' includes:
Your spouse (this includes same-sex de facto partners)
People with whom you had an interdependency relationship
People who depend on you financially
Most super funds let you nominate who you want your death benefit paid to, either as a non-binding or binding nomination.
If you don't nominate someone, the super fund trustee will decide who your money goes to. This can lead to delays and may cause fights in your family.
A binding nomination leaves your super fund trustee with no choice as to who gets your death benefit.
You choose whether the money goes to:
One or more dependants; or
Your legal personal representative, who must pay out the money according to your will
A non-binding nomination guides the super fund trustee on who will get your super benefits. However, the trustee still has the final say, especially if you nominate someone who doesn't depend on you. The trustee is not required to follow the instructions in your will.