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Who can invest in super?
You can. Subject to certain contribution caps, anyone under 65 can invest in their own superannuation. Contributions can be made with:
- After tax income (voluntary contributions). You may be able to claim a tax deduction for these contributions. You may also qualify for a Government co-contribution (see below), and/or
- Pre-tax income. Typically this involves a salary sacrifice arrangement with your employer, whereby you direct some of your pre-tax income into super.
- People aged between 65 and 74 may also be able to invest in super, but a work test applies (ask your financial adviser for details).
Your employer can. Employers are generally obliged to pay a percentage of an employee’s salary to superannuation, and may contribute more if they wish, up to certain maximums.
- Superannuation Guarantee (SG) and award contributions are compulsory amounts paid into your account by your employer (if you qualify). The amount paid is set by legislation and is a percentage of your gross income.
- Your employer can make extra contributions to your super account too, up to certain maximums.
Your spouse can. If you are under age 70, you can make contributions on behalf of your spouse, up to certain maximums.
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