My partner's superannuation is low

Discussion in 'Accounting & Tax' started by Maggz, 29th Mar, 2021.

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  1. Maggz

    Maggz Member

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    Hi all,

    My partner is from overseas and we are on the final leg of getting PR. Due to covid, she has been getting casual jobs and therefore not getting much in the way of super.

    Are there any ways of protecting her super? Such as merging into mine?

    She has a potential full time job opportunity coming up. I understand that I can contribute to her super to get a tax discount. Does anyone know how this works?

    Just looking for ways to protect her value.

    Thanks!
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Look at a low fee or industry fund eg Host, Sunsuper, CBus etc.
     
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  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Protection from what?
     
  4. Maggz

    Maggz Member

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    Protection from fees mainly, not sure much they are.
     
  5. Rugrat

    Rugrat Well-Known Member

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    You can make contributions into her super yourself.
     
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  6. Shogun

    Shogun Well-Known Member

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    I believe it's important for both people in a couple to have their own Super. As above a low fee one eg Host Plus has good investment options. Then make regular deposits to her account
     
  7. Stoffo

    Stoffo Well-Known Member

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    The fee's that eat into the super are often from the insurance components, you can contact the fund and have these insurance amounts varied (0).
    Not much you can do about tbe management fee's.
    From memory any super account with a balance under $1,000 can't have any fee's taken from it
     
  8. Marg4000

    Marg4000 Well-Known Member

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    Maybe a good idea to add contributions herself?
    Can be tax deductible.
    It’s amazing how small regular contributions mount up.
     
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  9. skater

    skater Well-Known Member

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    And yet, my tiny little Super Account that had something like $750 has just disappeared.
     
  10. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    A casual earning $450 in a month is meant to have 9.5% super contributed. If the employer is not complying its worth asking them why and then reporting the matter to the ATO if they arent co-operative. They tend to be when they are made aware they are STEALING her pay.
    Des she receive payslips that show earnings and super ? If not, contact the Fair Work Commission. It is a breach.

    No super cannot be combined. Each person accrues their own super.
    The employee also chooses which fund. NOT the employer. Their default fund may be a mysuper industry fund if the employee doesnt choose.
    There are no tax benefits of contributing to her super but if she contributes she may be able to claim a deduction for some or all.
    The employer contributes to super and this is called superannauation guarantee contributions. The employee may also contribute but a cap applies to the total from both sources. This may be $25K or higher.
     
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  11. Stoffo

    Stoffo Well-Known Member

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    Then I'd spend a few minutes reading, then send an email asking "WHY"?

    Low account balances are protected under Member Protection Rules. If a Superannuation fund holds less than $1,000, the fund provider is not allowed to charge membership or administration fees greater than $10 more than the rate of investment return that the fund has generated in the year.1 Sept 2012

    Low balance funds can be transferred to the ato
    https://www.google.com/url?sa=t&sou...FjAKegQIDhAC&usg=AOvVaw1R6lpUKEb8Z0fb8DQ8DsC1

    https://www.google.com/url?sa=t&sou...FjABegQIAxAF&usg=AOvVaw0OV23oIcOrgFtJ7BNaS5AT
     
  12. Scott No Mates

    Scott No Mates Well-Known Member

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    Or look up "lost super"
     
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  13. skater

    skater Well-Known Member

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    Oh, I know what happened to it. For some reason it was transferred to the ATO. I've tried for years to get the money out, and now they've introduced this new ruling that for small balances that have sat dormant for a long time, just get swallowed up by the ATO (to protect it for me:rolleyes:). I can get it out when I'm retirement age, so long as I don't forget, and after filling out a swathe of paperwork, I'm sure.
     
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  14. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Or login to MyGov and combine it with other super in a few clicks. the ATO are meant to migrate to that as a automatic process soon.
     
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  15. skater

    skater Well-Known Member

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    I don't have any other.
     
  16. Stoffo

    Stoffo Well-Known Member

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    Hope some of this helps the OP ;)
     
  17. AndrewM

    AndrewM Well-Known Member

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    There is a spouse contribution tax offset which could provide an offset of up to $540 if you make a non-deductible contribution to your spouse's super and you and your spouse meet the eligibility criteria.

    Super related tax offsets

    There's also other contribution strategies that can be looked at and other benefits available if eligible like claiming a tax deduction for personal contributions, government co-contributions, low income super offset, unused concessional cap.

    A lot to try and sort through without some personal advice.
     
  18. Stoffo

    Stoffo Well-Known Member

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    There's also the Govco "co contribution scheme"
    Being that you after tax contribute $1,000, and Govco match it 50%/ to $500 per annum
     
  19. Clean Cookie

    Clean Cookie Well-Known Member

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    This.

    I was young (still am I guess) and dumb and didn't care. My IP was at 3x my usual wage and destroying my balance. Once fixed I now contribute an extra $100/wk to try catch up, my wife does a similar amount into her account. We are well aware of the need for additional support for us and if our super can support us in retirement any property is a bonus, I'm a tradie earning basic money and she's a teacher on slightly more. Currently I worry how low it is (29yo, only $150k balance) but slowly it will grow.
     
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  20. Ryan23

    Ryan23 Well-Known Member

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    Im not sure is a 150k Super balance at 29 is considered low? Google average super balance by age and if might cheer you up a bit.