Are you on top of your superannuation savings? What about your employees’ super? As the financial year end approaches, here are some reminders about superannuation strategy.

1. Salary sacrificing

   This can significantly enhance superannuation savings for retirement. By creating an agreement between an individual and their employer, workers can commit a part of their salary directly into their super account. Because contributions are deducted from their before-tax salary, their taxable income is reduced while their retirement savings receive a boost. In some individual situations this may mean they will be taxed at a reduced marginal rate due to the decrease in taxable income.

2. Government co-contribution

   The government will make a co-contribution of up to $1,000 to superannuation funds for each personal after-tax contribution made by a tax payer. However, to receive government co-contributions the individual must be under 71 years-old, earn an annual income of less than $61,920 and receive at least 10 per cent of income from employment — either as a self-employed or as an employee.

3. Super contributions and the self-employed

   Individuals may be eligible to claim a full tax deduction on their superannuation contributions if they are self-employed, substantially self-employed or an unsupported person. However, they will be regarded as non-concessional contributions if they do not claim super contributions as a tax deduction.

   To qualify as a ïsubstantiallyÍ self-employed person, income from an employer who is required to make superannuation contributions must not exceed 10 per cent of total earnings. To be considered an unsupported person, individuals must not receive any super contributions from assessable income in that income year.

4. Spouse contributions

   Generally a tax deduction for super relates to the person making the contributions on their own behalf. There is an exception when it comes to spouses. An individual can make a concessional contribution to a super fund and split those contributions with a spouse.

   If they make contributions for their spouse, they may also be eligible to claim a tax offset, depending on their spouseÍs income. Although once their spouse turns 70, they can no longer make contributions on their behalf.

   Spouse contributions can be made on behalf of a spouse if they are aged 65 years or younger, or if they are between 65-70 years and have worked at least 40 hours over 30 consecutive days in the financial year in which the contribution is made.

• RSM Bird Cameron is an Australian accounting firm
• The information provided in this is general advice. The information has been prepared without taking account of personal objectives, financial situation or needs. Before acting on the information, individuals should consider the appropriateness of the information, having regard to their personal objectives, financial situation and needs.