A super package
The fourth and final part of our series looks at salary-packaging superannuation.

By Maria Cavallo

Feather your superannuation nest with salary sacrifice.

Photo by CPL Cameron Jamieson

IN RECENT times, studies have shown that unless people increase their rate of retirement savings, they may not have enough money to comfortably retire on.

One way of avoiding this outcome is to make salary sacrifice contributions to a superannuation fund.

Superannuation is seen as a tax-effective investment strategy that forms the foundation for a long-term savings arrangement to primarily deliver retirement income. At present, over 1000 ADO members take advantage of this.

As an ADO member, you can choose to make additional superannuation contributions to your own super fund and include these payments in your salary-packaging arrangement.

These additional contributions are paid from your pre-tax salary and are therefore free from income tax.

Superannuation has its own tax rules and ADO members are encouraged to seek independent financial advice to determine how salary-packaging additional superannuation contributions can be best integrated into their overall wealth creation plan.

A list of ADO-approved financial advisers can be found at www.smartsalary.com.au. Enter the employer code ADO.

As additional superannuation contributions cannot be made to the ADO Commonwealth super schemes or defined benefits schemes, an employee is required to select an appropriate commercially-managed fund or a complying self-managed superannuation fund.

This will still complement your official schemes when retirement income is derived. Again, you financial adviser or investment specialist can assist in structuring and explaining these options.

Contact the SmartSalary Customer Service Centre via email at defence@smartsalary.com.au or by phoning 1800 632 496.

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