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Rebuilding Super After Early Access

Superannuation is income for our retirement however as a result of financial hardship caused by coronavirus, access to super may be an important way to help you make ends meet at this difficult time. You should check if you are eligible for any of the other benefits and concessions available first.


Withdrawing some of your super may impact other benefits within your super such as your insurance or minimum account balances, as well as the long term impact this may have to your retirement savings. Make sure you check with your super fund that you will not lose any benefits attached.

Times may be tough now but committing to a strategy to rebuilding your super, will help you focus on the things you can control and not get weighed down by fear and doubt over the impact to your retirement savings.

Here are a few strategies you could consider:

Salary sacrifice – contributing a regular amount of pre-tax salary to super is a simple and effective strategy if you have sufficient cash flow to meet your everyday needs. You can start small and build this up over time. Salary sacrifice uses the power of compounding interest to make your super work harder for you. This strategy suits people with regular, consistent earnings. If this is not you, look at some of the other options or wait until your income is consistent. Salary sacrifice contributions count towards your concessional cap ($25K pa)which includes employer contributions.

Government Co-contribution – this is great for people who earn less than $53,564 (2019 threshold) and can make a personal contribution of $1,000 to super. The government will also then contribute $500 to your super account. This amount may vary according to your income if its above $38,564. A personal contribution will count towards your non concessional contributions cap ($100K pa.) This strategy suits you if you have savings available and an income within the above levels.

Spouse contribution – this may suit a couple where one member earns less than $40,000 pa and you have savings available to make a $3,000 to their super fund; you may be eligible to receive a tax offset of up to $540. The spouse contribution will count towards your spouses non concessional cap.

Catch up Concessional contributions – this one is a little tricky and may suit you if you have not fully utilised your concessional contributions since 1 July 2018. There are further eligibility requirements so contact us if you want to explore this option.

Seek advice to see which strategy will suit your circumstances and set your super on the road to recovery.

This information contained in this document has been provided as general advice only. The contents of this document have been prepared without taking account of your personal objectives, financial situation or needs. You should, before making any decision regarding any information, strategies or products mentioned in this document, consult with your GPS Wealth Ltd financial adviser to consider whether it is appropriate having regard to your own objectives, financial situation and needs


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