9.2 Million Australians Benefits From Major Superannuation Change From April: $17,570 Boost: New analysis from the super members council found about 9.2 million Australians would receive an average of $340 extra added to their super each year. Here are the Top 10 benefits of superannuation for saving money. Super is a powerful tool for building financial security. But are you using all the benefits of super to your advantage? Here we give you 10 ways to unlock your super`s full potential as one of the best ways to save money for your future.
Major Superannuation Change From April
Australian workers will be getting an automatic boost to their retirement savings when compulsory employer superannuation payments increase next week. The average Australian will be hundreds of dollars better off each year.
The supergroup estimates a 30-year-old would receive a $17,570 boost at retirement due to next week’s rise it could add $34,000 to their balance by the time they reach the end of their working life.
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More than 1 million Australians are set to benefit from a cash boost to a raft of welfare payments as indexation kicks in with the new year. Those who get Youth Allowance Austudy and carer allowance payments are among those set to see an increase to their fortnightly payments on April 1, 2025.
There are 10 benefits of super
There are plenty of reasons why using it as a savings strategy is a great idea. and you will find some unexpected ways that you can save money.
- Pay less income tax
- Cheaper, automatic insurance cover
- Discounts and rewards
- Less tax on investment returns
- Extra money from the government
- Advice for no extra cost
- Save a home deposit faster
- Protection against bankruptcy
- Ability to invest in private assets
- Tax-free income when you retire
1. Pay less income
When your salary is sacrificed to super, you pay just 15% tax on your payments. Compare this with up to 47% tax that you`d normally pay based on your salary. You may also be able to claim a tax deduction for the after-tax contributions you make to your super.
2. Cheaper, automatic insurance cover
Superfunds can get group discounts on insurance premiums, and they usually pass these savings on to members. So, it is often cheaper than insurance outside of super.
If your super fund offers automatic insurance coverage, you usually won’t need to get a health check. It can be a more budget-friendly option. It is an easy set-and-forget payment. Although this may mean you will end up with less in your super account for retirement.
3. Discounts and rewards
With some super funds, you can start saving money on the things you need today with exclusive member deals. Our member Rewards give you access to deals and discounts with brands across Australia. It pays to shop around for the right super fund for you.
4. Less tax on investment returns
Investment earnings in your super account usually have a low 15% tax rate. This is often less than the tax rate of up to 47% on investments outside of super.
When you retire, it`s even better. If you use your super to open a retirement income stream, the investment earnings are tax-free.
5. Extra money from the government
The government co-contribution is a bonus from the government for low and middle-income earners. To get it, you need to:
- Add extra to your super after-tax
- Earn under $60,400 in 2025-25
- Give your tax file number to your super fund
- Meet the government`s rules.
6. Advice for no extra cost
Most large superannuation funds include the cost of advice about your super account in your membership. It is a large benefit If you are trying to save money. Speaking with a qualified financial adviser will help you to saving goals.
7. Save a home deposit faster
The government`s Home Super Saver Scheme helps you save for a deposit on your first home using your super. You can add voluntary contributions or extra savings to your super and then take out up to $15000 in a financial year when you are ready to buy.
How to apply for the FHSS scheme
- Add money to your super
- prepare to buy a home
- Apply for FHSS scheme determination with the ATO
- Submit a release request to the ATO
- Get your money
- Buy your home
- File your tax return
8. Protection against bankruptcy
It can give you added security for your savings if you go bankrupt. As long as your superannuation is in a regulated super fund won’t impact your retirement savings. your amount is safe from creditors. But that is not the case for any money you take out before bankruptcy. If you do this you asset of the bankrupt state.
9. Ability to invest in private assets
Superannuation is one big investment portfolio. Your moneys pooled with other memberis retirement savings. With all that buying power, super funds can invest in private asses like airports.
10. Tax-free income when you retire
Superannuation benefits don’t stop when you retire. once you turn 60 you can usually access your super without paying tax. It doesn’t matter if you withdraw, money s through a super income stream or take it out in one big sum.
Conclusion
9.2 Million Australian super providers most members with insurance cover included with their super account. Eligible members get age-based Death, total & permanent Disablement and income protection cover. Single recipient of youth allowance, who are over 18 years old living at home will receive an extra $17.30 a fortnight, boosting their payment from $459.80 to $477.10. The compulsory superannuation rate is currently 11.5% it will be increased by 0.5% on 1 July 2025 to reach 12%.