Main region

Super Insider podcast

Your inside guide to super

Super Insider podcast

Your inside guide to super

Episode 19: How to save tax using your super

Featured episode

11 April 2024

Get ready for the end of the financial year with Super Insider. Host Anne Fuchs and guest Steven Fehring share some great ways you could grow your super and save on tax. Here’s a sneak peek of what you’ll learn:

  • why putting money into super could help you pay less tax
  • what salary is sacrifice and how it works
  • how to claim a tax deduction on personal super contributions

Remember, the more you know about super, the more you can plan for your future. Subscribe to Super Insider now.

Watch or listen now
Anne: Hello and welcome to Super Insider, where we chat to you about all things you need to know to make the most of your super. My name is Anne Fuchs and I'm the Executive General Manager of Advice, Guidance and Education at Australian Retirement Trust.

Now, before we begin, I'd like to acknowledge the traditional owners of the land and waters where we’re recording this podcast today. And it's really important to remind you also that what we're discussing is general advice only, and you'll need to decide if it's right for you.

Now, it's really fantastic that we have Steven Fehring, one of our Member Education Officers on the podcast today. Welcome.

Steven: Thank you, thank you for having me. Tax!

Anne: Tax is sexy man, believe it

Steven: Everyone's favourite topic, tax.

Anne: Well, when it comes to superannuation and tax, I reckon it's as close to sexy as you can get. Because there's so many amazing things in terms of the opportunities to build your wealth for retirement off the back of tax strategies with super.

Steven: Absolutely. Everyone loves paying less tax and I guess that's what this is about, is less tax.

Anne: Okay, so what are the main ways people can save for retirement, and save tax?

Steven: Yes, so essentially when you put money into superannuation, there are 2 ways that you can do it personally. One is through a salary packaging company or your employer, which is called salary sacrifice. The other way is to personally put that money into superannuation, and you claim a tax deduction on it.

So, really getting the difference between the 2 ways of putting money into super is what's important.

Anne: Okay. And what are the different tax rates for contributions?

Steven: Yes, so any contribution you claim a tax deduction on, or use for salary sacrifice, gets taxed the exact same rate in superannuation, which is 15 cents in the dollar. What really matters is your own personal marginal tax rate. So marginal tax rates, if you're over $45,000 per year, generally goes up to the 34.5 cents in the dollar.

And that's where the salary sacrifice, or claiming a tax deduction, really becomes important because you take your tax rate from 34.5 cents in the dollar down to 15 cents in the dollar.

Anne: So, if you're considering whether salary sacrifice is a great strategy for you to accumulate more wealth at retirement, this is one of the key considerations.

Steven: Yes, absolutely. The first thing I would do is, I would jump on an online salary sacrifice calculator, and there's websites like moneysmart.gov.au where you can check those calculators.

Anne: That’s the ASIC website, isn’t it?

Steven: Yes correct. They have a good calculator where you can put in your current income and say, I want to salary sacrifice - it could be $100 a week, $200 a week - and it will show you what that actual difference makes for you. And from there, should you want more guidance or more information, you can have a chat with your super fund, or a financial adviser will recommend the exact dollar figure you should be putting in the super.

Anne: So, what about claiming a tax deduction? How can you claim a tax deduction when it comes to super?

Steven: Yes, so this is quite new for superannuation. So about 3 years ago they changed the rules. It used to be you had to be self-employed to claim a tax deduction, but they opened it up for everyone. So, 3 or 4 years ago you put money into super and if you wanted to claim a tax deduction, it was not available to you. But now, if you're eligible, you may be able to do a post-tax contribution into super and claim a tax deduction on it. Just check with your super fund how they accept it. Most funds accept BPAY. Put that money, via BPAY, into superannuation and then you can jump onto their website and claim a tax deduction online, or via a form.

Your super fund will write to you, and go “Hey, you put in $10,000, you claimed a tax deduction on $10,000, here's the difference - we've taken 15% tax out”. You can take that to your accountant, and you can get that contribution in your tax deduction.

Anne: So how much super can I claim then as a tax deduction?

Steven: Very good question that one. It’s a little bit different for everyone because it does depend on age and super balance. Generally speaking, most people can claim a tax deduction up to $27,500 per year. But if your employee has contributed, that counts as well. However, in the future, we'll be putting in $30,000 before tax and possibly $120,000 post-tax when they get indexed next.

Anne: So, we're talking about the tax benefits of superannuation, but where do tax benefits not apply for people?

Steven: Let’s say you're in a higher income, you’re on $250,000 per year. When you're on $250,000 per year, any excess amounts to put in super get taxed at 30 cents in the dollar.

That said, at the moment, someone on $250,000 per year is being taxed at 47 cents in the dollar. So, you just have a few more considerations if you’re in a very high income.

If you're on a lower income, you're only being taxed at 19 cents in the dollar, or even a zero per cent tax rate. So, if you paid 15 cents inside of superannuation, that also may not be most helpful to you. Keep in mind though, tax rates are changing on 1 July 2024.

Anne: You’ve just highlighted Steven that there are so many rules around all of this, and so many ways to really maximise tax with super, getting advice is important.

Steven: Yes absolutely. It's one of those things, we all want to do what's best for us. And you might have spoken with someone who has a similar situation to you, but it's not going to be the same. And just that little rule - so being someone who's on $50,000 versus someone on $40,000 - sure it might be a similar job and similar pay, but very different things if they're trying to put money in the super. Who's going to have an advantage there, and who's not?

Anne: And accessing advice from your super fund around these simple things is something that members of Australian Retirement Trust can do as part of their membership fee. Picking up the phone, calling us, and getting an advice appointment.

Steven: Yes, absolutely, it’s 30 minutes of your day and you'll find a lot of value out of it.

Anne: So, Steven, if I've done all this research and I'm thinking, “What's the best approach for me? Should I salary sacrifice, or should I claim a tax deduction?” where do I go for information, what should I be thinking about?

Steven: This can be a tough decision. With salary sacrifice, obviously you get the deduction every fortnight or whenever your pay-cycle is, so you get the immediate benefit of that salary sacrifice in your take-home pay.

However, for some people that doesn't work for them. You might have sporadic income. So, let's say you’re a tradie. You have might have a 30-day invoice system, or a 60-day invoice system. Having that salary sacrifice money go our every fortnight is going to impact your cash flow. So, for someone in a job that's less secure – a secure job, but the industry is less secure - they might decide to do a lump sum payment at the end of the financial year and then claim tax deduction on it then. There's no difference in tax rates. They're both taxed at 15 cents in the dollar. The only difference is one's done automatically, every fortnight, and the other one is just done when you're able to put that money into superannuation.

Most super funds have a way to claim a tax deduction. That might be via a paper form, or they might have an online portal for you. But the timing of that form is very important. You need to make that contribution before the end of the financial year, but you must let us know you intend to claim a tax deduction before you do your tax return or before the end of the next financial year, whichever comes first, or you won't be eligible to claim a tax deduction.

Another tip would be, let's say you're ready to retire and go into income phase. You must put that income, that intent to claim a tax deduction form, before you go to income phase or before you roll out to another super fund, otherwise it's not available. So just something to be aware of, timing is very important if you're going to make those post-tax contributions.

Anne: If you wanted to do your own homework, you mentioned the ASIC Moneysmart website and the calculator on there. Where else can you find information around tax, and the tax benefits with superannuation?

Steven: Yes, so most super funds will have a good explanation on it and the ATO website itself is a great spot, plus other podcasts like this.

Anne: Okay, there we go, nice plug for Super Insider, good on you. Thank you very much for joining us on tax and super. Hopefully we made it a little bit sexy. I encourage all our listeners to please review the episode, share with your family and friends and subscribe to Super Insider so you know when our next episodes are ready for you, and we'll look forward to you joining us again soon.

Any unused amounts rollover and can be used for up to 5 years. Not sure how we go about adding content in?

About Super Insider

Your super is key to achieving your best retirement – so how do you make the most of it? Don’t miss Australian Retirement Trust’s Super Insider podcast – your guide to superannuation, planning for retirement, and what the economy and investment markets mean for your super from those in the know.

Join host, Australian Retirement Trust Head of Advice Anne Fuchs, as she interviews super and investment experts to bring you exclusive insights, tips and strategies to help you make the right choices today and feel confident about the future.

Listen on your favourite platform

This podcast is general information only and brought to you by Australian Retirement Trust Pty Ltd (ABN 88 010 720 840, AFSL No. 228975) as trustee for Australian Retirement Trust (ABN 60 905 115 063) (the Fund).

Other episodes

Episode 19

11 April 2024

Episode 19: How to save tax using your super

Get ready for the end of the financial year with Super Insider. Host Anne Fuchs and guest Steven Fehring share some great ways you could grow your super and save on tax. Here’s a sneak peek of what you’ll learn:

  • why putting money into super could help you pay less tax
  • what salary is sacrifice and how it works
  • how to claim a tax deduction on personal super contributions

Watch or listen now
Episode 18

04 March 2024

Episode 18: Women’s edition: Super steps – taking charge of your financial freedom

In this special episode we shed light on the importance of women taking control of their financial futures and superannuation. From practical tips like consolidating super funds and maximising contributions, to navigating life events such as transitioning to retirement, this episode shares details to make informed decisions about your financial future. Join the conversation as we encourage women to prioritise their financial security and inspire confidence in achieving retirement goals. Subscribe to Super Insider now and start your journey towards financial freedom.

Watch or listen now
Episode 17

01 March 2024

Episode 17: Investment market outlook - what’s in store for 2024

The economic landscape will keep shifting this year according to many experts. Super Insider is here to help make sense of it all and what it may mean for you. Join us as we tap into the expertise of our Chief Economist Brian Parker, as he tackles questions like:

  • How is the economic cycle changing?
  • Will we see an end to the global supply chain disruptions?
  • What’s the future for inflation and interest rates?

Watch or listen now
Episode 16

25 Jan 2024

Episode 16: Our top 10 retirement questions answered

Retirement is a phase of life that many of us eagerly look forward to. It’s a time to slow down, relax, and pursue our passions. But with the rising cost of living, it’s essential to make sure that our retirement savings can fund the life we’ve been dreaming about.

In the second instalment of our new Q&A series, Australian Retirement Trust Member Education teammates April Smith and Kane Everingham answer our top 10 most asked retirement questions and provide valuable insights and tips to help you retire well with confidence. So, whether you’re just starting to plan for retirement, or already in the thick of it, watch or listen now to learn how to make the most of your super and enjoy the retirement you deserve.

Watch or listen now
Episode 15

15 Jan 2024

Episode 15: Self-managed super funds (SMSFs) or regular super?

If you’re thinking about opening a self-managed super fund (SMSF), check out this episode to learn some common SMSF misconceptions and how the product compares against regular super funds. During the episode our host, Anne Fuchs and Australian Retirement Trust National Education Manager, Joshua van Gestel discus some of the differences between a SMSF and a regular super fund, potential costs and work involved with a SMSF, considerations of a SMSF and benefits of a regular super fund.

Watch or listen now
Episode 14

29 Nov 2023

Episode 14: Super 101: Your super questions answered

We have a new addition to Super Insider: our new Q&A episodes. These quick-fire sessions answer our most frequently asked questions and share practical tips and insider knowledge to help you get the most from your super.

Watch or listen now
Episode 13

29 Nov 2023

Episode 13: The economy, market volatility and your super

A lot has happened on the global stage since our host, Anne Fuchs, and Chief Economist Brian Parker caught up in August. In this episode, Anne and Brian examine how geopolitical conflicts could affect world economies, the future of inflation and interest rates, and the importance of making informed investment decisions during market fluctuations. Stay informed with this must-listen episode.

Watch or listen now
Episode 12

12 October 2023

Episode 12: Protecting your super from scams and fraud

It’s no secret that the internet has revolutionised the way we handle our finances, but it’s also opened the door to scams and fraudulent activities. And when it comes to our hard-earned retirement savings, most of us can’t afford to take any chances.

In this episode, join our host Anne Fuchs and Australian Retirement Trust’s Manager of Financial Crimes, Rebecca Mallett and Chief Technology Officer Rod Greenaway as they discuss financial scams, how to spot them and how to keep your superannuation investment and information safe.

Watch or listen now
Episode 11

11 September 2023

Episode 11: How to make your money last through retirement

Retirement is a major milestone in most people’s lives. But making sure that our money lasts throughout retirement can be a worry, and sometimes even a challenge.

Don’t miss Australian Retirement Trust’s Senior Manager of Advice Delivery, Luke Caruana in conversation with host Anne Fuchs as they discuss how much super is needed to retire comfortably, options for accessing your super in retirement and what you can do to help make your super last.

Watch or listen now
Episode 10

14 August 2023

Episode 10: Investment market update August 2023

The economic landscape has experienced significant changes since the beginning of the year.

Join Super Insider host Anne Fuchs and Australian Retirement Trust's Chief Economist, Brian Parker as they break down the latest market developments and investment conditions, interest rate changes, cost of living and what it all means for your super.

Watch or listen now
Episode 9

11 May 2023

Episode 9: Transition to retirement – your guide to accessing your super while still at work

While many people eagerly look forward to their golden years as a time to relax and enjoy life, the transition from work to retirement needs careful planning. In this episode, join Australia Retirement Trust’s Member Education Officer, Patrick Dunlop, and our host, Head of Advice and Guidance, Anne Fuchs, as they explore strategies you can use to transition to retirement that allow you to work less while continuing to grow your super.

For more superannuation and investment insights, subscribe to Super Insider.

Watch or listen now
Episode 8

8 May 2023

Episode 8: How to choose your super investment options – a deep dive into helping you understand how and where your super is invested

Your super investment strategy can significantly impact your retirement outcomes. But with so many options available, how do you choose the right one?

Join Australian Retirement Trust’s Head of Private Corporate Assets, Elizabeth Kumaru, and Head of Advice and Guidance, Anne Fuchs, as they discuss how super is invested and what you need to consider when choosing an investment approach that suits your needs and retirement goals. Tune in to this must-listen episode to gain valuable insight and take control of your super.

Watch or listen now
Episode 7

8 May 2023

Episode 7: Investment market update May 2023 - is there light at the end of the tunnel?

With international markets still uncertain, it’s never been more important to stay informed and take control of your financial wellbeing.

Join Australian Retirement Trust’s Chief Economist, Brian Parker, and Head of Advice and Guidance, Anne Fuchs, as they examine the latest market developments, including interest rates, the federal budget and what it all means for your superannuation investment.

Watch on YouTube
Episode 6

14 February 2023

Episode 6: What happens to super when you die?

You work hard for your superannuation savings, so what happens if you never get the chance to spend them? Hint: It’s not the same as your other money or investments.

Join host Anne Fuchs and super educator Ruth Weaver as they explore what happens to your super when you die and what you can do today to make sure your money goes to who you want when you pass away.

Watch or listen now
Episode 5

14 February 2023

Episode 5: Can I use my super to buy a house?

With housing prices rising over the past decade, the Great Aussie Dream of owning a home can seem just that – a dream. But did you know you can use your super account to help save for your first house deposit?

In this episode, host Anne Fuchs and super educator Megan Ashenden break down how the First Home Super Saver Scheme works and the pros and cons of taking money from your super to buy your first home.

Watch or listen now
Episode 4

8 February 2023

Episode 4: Investment market update February 2023: Outlook for the year ahead

2022 was a wild ride for investment markets with volatility impacting super fund returns, including Australian Retirement Trust’s.

Don’t miss Australian Retirement Trust’s Chief Economist Brian Parker in conversation with Anne Fuchs, Head of Advice, as Brian recaps the market ups and downs of 2022 and discusses what the New Year might hold for interest rates, investment markets and your super.

Watch on Youtube
Episode 3

2 November 2022

Episode 3: How much super you need to retire – and how to get it

It’s the number everyone wants to know – how much super do I need to retire?

Join Australian Retirement Trust’s National Education Manager Joshua van Gestel and Head of Advice Anne Fuchs, as they crunch the numbers to reveal how much super you need for a comfortable retirement income - and what you can do today to make sure you have enough later.

Watch or listen now
Episode 2

1 November 2022

Episode 2: Five easy ways to grow your super today

When it comes to super, most Australians have a “set and forget” approach. But there are simple and easy things you can do today to maximise your super contributions.

Join Australian Retirement Trust Member Education Officer, April Smith, in conversation with Head of Advice, Anne Fuchs, as she shares her top five tips for making the most of your super right now. Future you will thank you.

Watch or listen now
Episode 9

19 October 2022

Episode 1: Investment market update October 2022: Interest rates, investment markets and super

Investment market ups and downs are becoming the ‘new normal’ and continue to impact super fund performance, including that of Australian Retirement Trust.

Don’t miss Australian Retirement Trust’s Chief Economist Brian Parker in conversation with Anne Fuchs, Head of Advice, as Brian discusses what’s affected markets in the last quarter, how this has impacted super returns, and what it could mean for your super investment and retirement savings.

Watch on Youtube