Four ways to rebuild your savings Jul 13, 2020

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COVID-19 has impacted our lives in ways none of us expected. And while economic recovery and business resumption seems to be the main discussion points in the media, many Australians are more concerned about their personal finances1.

If your employment was affected by COVID-19, you may have needed to look at delaying bills, deferring mortgage payments and withdrawing money from super to help meet cashflow requirements. The financial recovery from this period will take time. It’s not just bank accounts and cashflow that need rebuilding, but super balances as well.

While your finances are still recovering, it’s understandable that you might not have cash to spare. The good news is with super, a little can go a long way. There are a number of simple ways you can catch-up your super balance without taking too much from your back pocket.

So, what’s next for your super?

  1. Small contributions that make a big difference

Our contributions app, SuperCents, is a great way to grow your super by making small, automatic contributions on a regular basis. The app will contribute the spare change from your everyday purchases straight to your super account. Once set up, the process happens automatically, so you won’t even need to think about it. Contributions made through SuperCents could also be eligible for tax deductions at the end of financial year, or attract the Government Co-Contribution.

  1. Maximising Government incentives = financial support when you need it!

If your income has been reduced during this time, you might have become eligible for one of the Government’s super incentives. Those who meet the required income thresholds could be eligible to receive extra money from the Government through the Low Income Superannuation Tax Offset and the Government Co-contribution.

  1. Save tax through salary sacrifice

Salary sacrificing some of your pre-tax income is a great way to boost your super and save on tax. Salary sacrifice contributions are generally taxed at 15% instead of your marginal tax rate2. If your marginal tax rate is higher than 15%, you can put more money into your super and reduce your taxable income. This can help you save on tax as well.

Review your financial situation
An easy way to get a handle on your super situation (and your finances in general) is through our financial advice service, Super Blueprint3. In just a few simple steps, Super Blueprint can provide Intrust Super members with a personalised financial plan, including retirement projections, investment options, contribution strategies and insurance recommendations. You’ll have some strategies to grow your balance and meet your goals in no time. Best of all, it’s free of cost for members. Access Super Blueprint today – log in to MemberAccess, navigate to the Financial Advice tab and follow the prompts.your partner earns less than $40,000, a tax offset could be available through the spouse contribution tax offset. Read more about this strategy

1Source: Australian National University, Hardship, distress and resilient: The initial impacts of COVID-19 in Australia, April 2020’
2People earning over $250,000 per year pay 30% tax on their contributions.
3This financial advice tool is provided by Link Advice Pty Ltd (AFSL No 258 145) and is available to Intrust Super members.

The information contained in this document is of a general nature only, and does not take into account your individual financial situation, objectives and needs. You should consider the appropriateness of the general information and read the relevant Product Disclosure Statement, available at or by calling us on 132 467,  having regard to your own situation before making any investment decision.