Rebuilding Your Super After Compassionate Release - Educational Guide

Accessing your super early on compassionate grounds provides vital funding for necessary medical treatments. Once your treatment is complete, you may wish to discuss strategies for rebuilding your retirement savings with a licensed financial adviser. Depending on your individual circumstances, age, and working status, there are several general methods people use to add to their superannuation. Below is general, educational information to help you understand these options.

– To help maintain long-term retirement savings goals.

– To help offset the impact of an early withdrawal.

– Depending on your tax bracket, some contributions may offer tax efficiencies. (Note: These outcomes depend entirely on your personal financial situation and may not be appropriate for everyone).

1. Personal Contributions

Individuals can make voluntary payments to their super fund from their after-tax income. Depending on your eligibility, you may be able to claim a tax deduction for these contributions, which generally means they are taxed at a concessional rate of 15% within the fund.

2. Regular Contributions

Some individuals choose to arrange regular, ongoing contributions through their employer’s payroll system or via direct debit, which allows super balances to grow gradually over time.

3. Salary Sacrifice

A salary sacrifice arrangement involves an agreement with an employer to redirect a portion of pre-tax salary into superannuation. For some individuals, this strategy may reduce their taxable income, but it is highly dependent on individual tax brackets and employer policies.

4. Contribution Caps

It is important to be aware that the ATO sets limits on how much you can contribute to super each year at concessional tax rates (the current general cap is $30,000 per year, including employer guarantee contributions). Depending on your super balance, you may also have access to ‘carry-forward’ rules for unused cap space from previous years.

Use a Calculator to Plan Your Contributions

Try the independent Super Contributions Optimiser from Moneysmart.
It helps you work out:

• How much you can afford to contribute
• The best mix of pre-tax and after-tax contributions
• How your take-home pay will be affected

Important Notes

• Contributions must be made to a complying super fund
• You must notify your fund if you intend to claim a tax deduction
• Contributions count in the year they’re received by your fund
• Seek independent financial advice before making decisions

How SuperCare Supports You

SuperCare’s expertise is focused strictly on assisting patients with the Compassionate Release of Superannuation application process. While we do not provide financial advice on rebuilding your super, we strongly encourage you to consult the independent resources at Moneysmart.gov.au or speak with a licensed financial adviser to build a strategy right for you.

General Information Warning

Please seek independent, professional financial advice before making any decisions. The example scenarios on this site are for illustrative purposes only and are not financial, tax, or medical advice. For authoritative guidance on the tax treatment and process for early release of superannuation, please refer to the Australian Taxation Office website.

SuperCare is a registered tax agent and provides tax agent services strictly within the scope of our client engagements for Compassionate Release of Superannuation (CRS) applications. SuperCare does not provide financial product advice, investment strategies, or medical advice.
The content on this page regarding rebuilding superannuation is general, educational information only. It does not take into account your personal objectives, financial situation, or needs. You should consider whether this information is appropriate for you and seek independent professional advice from a licensed financial adviser before making any decisions regarding your superannuation contributions.