SmartFinance Compass

Superannuation Made Simple: Boosting Your Retirement Savings Superannuation Made Simple: Boosting Your Retirement Savings Superannuation is the backbone of retirement savings in Australia. In 2025, rule changes and contribution strategies give everyday Australians more opportunities to grow their nest egg. Superannuation is compulsory, but boosting it is your responsibility. What is superannuation? Superannuation (“super”) is money set aside during your working life for retirement. Employers must contribute at least 11.5% of your ordinary earnings in 2025, but voluntary contributions can accelerate your retirement savings. Ways to boost your super Salary sacrifice: Contribute pre-tax income to reduce taxable earnings. Government co-contribution: If eligible, the government matches personal contributions up to a limit. Spouse contributions: Contribute to your partner’s super and...

Is Salary Sacrifice Worth It in 2025? A Simple Guide Salary sacrifice is a powerful but often misunderstood financial strategy. In 2025, more Australians are exploring how to legally reduce their taxable income and grow their retirement savings. But is it the right move for you? What Is Salary Sacrifice? Salary sacrifice (also called salary packaging) is when you agree to forgo part of your before-tax salary in exchange for benefits like extra super contributions, car leasing, or even work-related expenses. This reduces your taxable income, which may mean you pay less tax. Top Benefits Lower Tax: You reduce your taxable income, potentially saving thousands each year Boost Super: Extra contributions can compound over time for a better retirement Flexible Options: Packages can include electronics, novated leases, and more Drawbacks to Consider Reduced Take-Home Pay: You’ll have less money in your pocket now Limits Apply: Concessional super contributions a...