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How To Keep Nurturing Your Super Even When You’re On Maternity Leave

When your pay stops, your super doesn’t have to

If you’re thinking about parental leave or another extended break from your work, it’s important to think about how to keep your retirement savings growing during your leave.

Tipping regular contributions into your super account during a career break helps protect and grow your super balance while you’re not receiving employee contributions.

Start by asking your employer about their extended leave policies

If you’re going on maternity or primary carer’s leave, find out whether your employer pays super as part of your leave arrangements.  

Although this is not widespread in Australia, it’s considered a best practice workplace policy by the Australian Government Fair Work Ombudsman.

You may be eligible for tax offsets or government incentives that boost the impact of these contributions. Talk to a tax adviser about what’s right for both of you and visit The Australian Taxation Office website and ASIC’s MoneySmart website for more information.

Consider the pros and cons of making personal contributions

If you have a partner, look into whether it’s a good idea for them to make after-tax contributions into your super account while you’re away from work.

You may be eligible for tax offsets or government incentives that boost the impact of these contributions. Talk to a tax adviser about what’s right for both of you and visit The Australian Taxation Office website and ASIC’s MoneySmart website for more information.

Share the love before tax

If you’re an AustralianSuper member, your partner can split their pre-tax super contributions with you. Up to 85 percent of these contributions can be paid into your super account instead of their super account once a year.

These might include contributions made by your partner’s employer, plus additional contributions your partner has agreed to through salary sacrificing.

Share the love after tax

Your partner can also make after-tax payments into your super account. If your income is less than $40,000, they can contribute up to $3,000 a year into your super.

Your income must be $37,000 or less to receive the full tax offset of $540, but you might still be able to receive a partial tax offset if you earn up to $40,000.

Remember to consider your debt levels and financial commitments before making extra contributions to you or your loved one’s super.

To find out more about AustralianSuper’s services and superannuation, click here.