Women have been hit hard by covid-19 when it comes to their finances and particularly superannuation.With EOFY (End of Financial Year) approaching, how can women maximise this opportunity to rebuild some lost super?
Maximising EOFY to rebuild super after covid-19
With vastly more Australian women than men hardest hit with higher job losses, the end of the 2020 financial year is a chance to make amends, financially speaking. You can read some media articles from the Sydney Morning Herald and News.com.au.
There are a number of simple ways for women to save money, reduce tax and rebuild superannuation balances before June 30, EOFY.
Don’t touch that next $10k of super
Around 2 million adults had applied for early access to super before 30 June. The next chance to release another $10,000 of superannuation early is 1 July.
The team at Super-Rewards suggests women (and men) think twice before they touch it, as each dollar in super could be worth up to ten times more over 40 years, so saving now where and when you can matters.
Women still retire around with half as much super as men as a result of structural inequalities (read our blog here). This means women have less to rely on in terms of super, and also have less of a chance to recoup super monies spent now.
Earn super for shopping
Women make up to 80% of regular household purchases such as groceries, home-office furnishings, tech and food delivery. Super-Rewards encourages people to earn super on items they were already planning on purchasing.
Tax time and the end of financial year is an ideal time to take advantage of bigger-ticket items on sale, like mobiles, laptops, printers or other home-office items. Purchasing these with Apple, Lenovo, JBL, The Good Guys, Bing Lee or eBay – all on Super-Rewards – means women and men can make the most of EOFY to rebuild super.
Give back to your super
If you needed that $10,000 to survive this year, try to rebuild it as soon as you can – don’t wait! You can do this through:
- DIY super top-ups. You can contribute up to $25,000 before tax from your salary including your superannuation guarantee. If self-employed, you are still entitled to pay yourself super up to $25,000 from pre-tax income, for which you can claim a deduction. Or you can make to $100,000 in non-concessional contributions from your after tax income.
- Claim your tax. If you make a voluntary contribution to super – if this amount keeps your overall contribution for the year under $25,000 you can claim a tax deduction. If you earn less than $53,564 the government may match your contribution up to $500.
If there was ever a good reason to start shopping with Super-Rewards – to help women rebuild lost super, while taking advantage of EOFY – now is it!
This assumes that the money is earning 6% each year. This 6% is the average rate of return for a Balance Super Fund over the last 15 years, according to Chant West (https://www.chantwest.com.au/resources/2019-a-standout-year-for-super-funds)