Women and super
Women in Australia are likely to have significantly less in super than men. Learn how to close the gap.
Let’s not beat around the bush: taking maternity leave negatively affects your super. A 2018 study by Rest revealed that women take, on average, a $159,590 hit to their retirement savings due to career breaks (like maternity leave). Women are also 30% less likely than men to make any superannuation plans for career breaks, but some careful planning may help alleviate the stress.
Here's what you can do:
This just means your partner splits a portion of their super contributions into your super account — up to 85%. The only conditions here are that you can only split it as a lump sum immediately after the end of the financial year, the spouse must be less than the preservation age, and you can’t be permanently retired. Making voluntary contributions not only is an effective tax strategy but helps by keeping you eligible for your insurance cover by maintaining a super balance whilst taking a break.
Much like contribution splitting, higher-earning partners may also contribute take-home earnings into their partner's super account. While this may not be as tempting as a pre-tax contribution, there is an 18% tax-offset on any contributions made (up to $540 for those earning under $37,000 p.a.), and it helps create a more level retirement fund between the two of you.
|Tip: Spousal contributions are very easy to arrange — you can organise it right from the Rest App|
If you earn less than $56,112 a year, there are some other things you need to check to make sure you are eligible.(If you’re over the income threshold, check with your spouse/partner as they may be eligible.)
To qualify you must not have contributed an amount more than your after-tax contributions cap for the relevant financial year.
You will not receive a co-contribution for any personal contributions you make that you claim a tax deduction for.
It might be low on your current priorities, but a quick finance check will ensure your super is in the right position so you can focus on what's in front of you:
|Tip: * Work related expenses like lunch, coffee and transport may no longer apply when you go on leave. Try Rest's small change calculator to find out how much you could be saving!|