Grace Financial Services in Toronto just south of Newcastle NSW for professional financial planning and advice including insurance and super

Phone 02 4905 0250



Phone 02 4905 0250

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Superannuation is a highly effective way to provide a retirement income stream for retirement. However, with all of the options, conditions and choices available it can be very confusing.

At Grace Financial Services we are committed to looking after your best interests. That includes working out an appropriate strategy and platform for your superannuation investments.

Sort out your super at Grace. Your financial adviser will give you superannuation advice in your best interest.

Superannuation - Simple and Effective

How does a government get people to look after themselves during retirement, so that the government doesn't have to do it themselves?  Superannuation!

Superannuation is simply a tax effective scheme to lock away money for retirement or an extreme personal crisis.

Because our superannuation is going to be locked away for a future time, government policy must make it attractive enough for us to use it.

Superannuation Tax Benefits

Part of the matter is covered with the fact that superannuation is mandatory for employers. Currently they must pay 9.5% of our wages into a super fund for us. That is increasing as years go by.

The required contribution paid by the employer is not taxed in the hands of the employer, but instead the superannuation fund is concessionally taxed at 15% for most employees.

Salary Sacrifice to Superannuation

In general, the standard Superannuation Guarantee Contribution (SGC) that your employer is required to make isn't going to be enough to replace the equivalent of your working income through retirement. More is needed.

There are a variety of ways to get more into your super fund, but one of the most basic, and effective, is salary sacrifice to super.

Before tax is taken out, your employer takes some of the money that would have come directly to you minus the tax, and instead adds it to what they are paying into your superannuation fund. While the super fund is taxed on the money, that's still at 15% which generally is much less than what your employer is taking out.

That's a great way to grow your super and pay less tax.

Undeducted Contributions to Super

It's also possible to pay funds into your superannuation that you have already paid tax on. Perhaps you receive an inheritance, or simply decide to move some of your wealth into superannuation. This might be to get it into a more tax effective structure or for other reasons. When those funds go into super, no tax is paid on the contribution.

Note that with both types of super contributions, there are limits on what you can put in each year.

Government Co-contribution for Super

If you are on a low income, a good strategy may be to make a personal, undeducted contribution of $1,000 to your superannuation fund each year. At the present time, the government generally will then add to that up to $500 in the following year, after your tax return has been submitted, the amount depending on your income.

Spouse Contribution

If your spouse is on a very low income, you may be able to contribute up to $3,000 to his or her superannuation as an undeducted spouse contribution and receive a 18% tax offset for yourself. That's up to $540.

Superannuation Legislation

With governments continually trying to balance budgets, please voters and manage future liabilities, superannuation laws are constantly changing. Be very careful about where you get your information from, because it may be out of date shortly after it is published.

The best approach is to have a financial adviser looking after your interests. Your adviser needs to keep as up to date as possible on the relevant legislation so that you may be given appropriate advice.

Here at Grace Financial Services we can give you that advice whether you live near our offices or are across the country. Call us on 02 4905 0250 today!

Grace financial planners will help you to work out the most suitable superannuation policy for your financial goals and needs.

Meet with a superannuation adviser

• A financial adviser can help you see the full picture, including superannuation platforms and the investments they hold.

• You can meet with your adviser in our offices, over the phone or on Skype.

Call us today on
02 4905 0250

Or complete the

superannuation blog

• What is different between superannuation funds?

• Are industry super
funds always the

• Should I
consider a
Super Fund?

Do you need a SMSF or an industry super fund? Which superannuation is best for you? Grace will help you know.




Information or advice provided on this website is general in nature and does not take into account your investment objectives, financial situation, particular needs or risk profile. All of those matters are very important in making decisions about financial products, even of a general nature. With or without the assistance of a licensed representative, you should consider whether any advice received is appropriate in light of your particular investment needs, objectives and financial circumstances. We recommend, therefore, that you make an appointment with a financial adviser to receive personalised advice prior to making any investment or financial product decision. You should also obtain a relevant Product Disclosure Statement for any financial product being considered and read it.


Grace Financial Services Pty Ltd seeks to keep this website updated, however, information can change without notice, so you should discuss any matters that concern you with your financial adviser to get up to date information. Neither Grace Financial Planning Pty Ltd nor HNW Planning Pty Ltd guarantee the accuracy, completeness or reliability of information on this website, including information provided by third parties, at any particular time.


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