Thanks to the power of compounding interest, making extra contributions to your Vision Super account today (beyond your employer’s compulsory contributions) can help make your life after working more comfortable. And the earlier you start – the more comfortable you may be.
Below are four different options to consider, depending on your income and situation.
In the right circumstance salary sacrifice can be one of the easiest and most beneficial methods of boosting your super. As the name suggests, you nominate an amount of money to be ‘sacrificed’ from your salary before tax is taken out – meaning you’ll get a bit less in your pocket now, but could also pay less tax.
Money diverted from your salary and put into your super is taxed at a maximum rate of 15%. That compares to your marginal tax rate, which can be up to 47% (including the Medicare levy) depending on how much you earn.
Plus, once you’ve set up salary sacrifice with your employer, you don’t need to think about it again – your super will grow each time you’re paid.
Salary sacrificing will work for you if your income is high enough that you’re paying more than 15% tax on your overall income, and you won’t miss the money coming out of your pay. If you’re a low-income earner, you might find that after-tax contributions are the better option.
Finally, check with your employer to see whether they offer salary sacrifice.
Here’s an example of the difference additional salary sacrifice contributions, with the help of compound interest, can make to your retirement savings
There are things to consider before you decide to salary sacrifice, such as the contribution caps and division 293 tax which is paid when income is over $250,000. You should also consider obtaining your own tax advice.
How the projections were calculated
Projected super balances are estimates only based on assumptions and are provided to illustrate the difference salary sacrifice can make.
Assumptions include: Return of 7.5% (before investment fees and earnings tax), 7% tax on earnings, 2.5% inflation and 1.5% rising community living standards, investment fees of 0.85% & admin fees of $74 pa. Insurance costs are not included.
Source for projected super balance calculations and assumptions as at 31 August 2022. Assumptions may turn out to be incorrect. Projected super balances are not guaranteed. Assumptions used are from the ASIC calculator, refer to calculator for all relevant assumptions. The benefits of salary sacrifice contributions for you will depend on your individual circumstances.
Simply fill in a payroll deduction form and give it to your payroll person or HR department. They’ll make the arrangements for you.
After-tax contributions are also sometimes called personal contributions. Unlike salary sacrificing, this option involves paying an amount into your super from your after-tax income or savings. This could include property net proceeds or an inheritance, where tax has previously been applied. You can do this at any time, either as a regular transfer or a one-off payment from your bank account.
As you’ve already paid tax on these funds, after-tax contributions are not taxed again when you deposit them into your super account. You might also be able to claim a tax deduction on these contributions, to reduce the amount of tax you pay in a financial year.
Adding to your super fund when you have some extra cash on hand means when you reach retirement, you could have more savings to retire with. Even small amounts added now can make a big difference to your super in future, because of investment earnings on your super for the whole time (noting investments earnings can sometimes be negative in the short term). You need to be aware that if you claim a tax deduction for your personal contributions at tax time, your contributions will change from after-tax to before-tax, meaning they will become subject to contributions tax at a maximum rate of 15%, and will count towards your yearly $27,500 cap on before-tax contributions. You should also consider getting tax advice.
Before contributing extra to your super it’s important to know that limits apply to the amount you can contribute to your super. So you should review all the super contributions you make, to make sure you stay within the caps. Your ability to make extra contributions may also be restricted by your age. For more details on contributions caps visit our contributions cap page.
Pay by BPay
You can set up a regular BPAY payment through your internet banking, or make a one-off contribution at any time from your bank account.
If this doesn’t work for you, please give our member services on 1300 300 820
Learn more about contribution caps.
There are a number of ways you can grow your super. Salary sacrifice and After tax contributions have been summarised above. To learn more about Spouse or Government contributions, click on the boxes below.
See for yourself how small contributions can improve your super savings with these handy calculators.
Call our Member Services team on 1300 300 820.
We’re required to have Target Market Determinations under the Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) Act 2019.
This is to make sure we’re keeping members at the centre of our approach to the design and distribution of our financial products.
This legislation requires financial services product issuers to design products that are appropriate for the consumers in the target market and consistent with their objectives, financial situation, and needs.
A Target Market Determination is a document which describes who a product is appropriate for (target market), and any conditions around how the product can be distributed to customers.
It also describes the events or circumstances where we may need to review the Target Market Determination for a financial product.
It depends how your details have been changed. The most common request is changing a surname due to marriage, which you can do with a certified copy of your marriage certificate, and a Vision Super “Change of Personal Details form” found here: view form
If you have changed your name another way, we recommend you contact us first on 1300 300 820 so we can outline what documents we need to change your details without issue.
If you want to change your address, you can do this by logging onto the secure member portal online, or calling our Member Services team on 1300 300 820.
Here’s how it works. You may be able to receive a tax-free contribution from the Government when you make a non-concessional (after-tax) contribution to your super account. The maximum entitlement that can be received is $500 where your total income is $41,112 or less in the 2021/22 year. This reduces on a sliding scale and cuts out if your total income is above $56,112 in the 2021/22 year.
This is, of course, provided you satisfy work, income and age tests.
Please note that the income threshold test for the co-contribution is your total income, which is calculated as follows:
Total income (assessable income + reportable fringe benefits + reportable employer super contributions – allowable business deductions).
In very basic terms, ‘salary sacrificing’, or ‘salary packaging’ means using some of your before-tax salary to pay for something. In superannuation terms, it is usually an arrangement between you and your employer to contribute some of your before-tax salary into your superannuation account.
In the 2021/2022 financial year, the maximum that can be contributed as before-tax payments is $27,500, this includes your employer SG payments of 10%.
Please note that any after-tax contributions made, where you obtain a tax deduction, are included in this contribution limit.