Retirement
Women starting a family benefit most from super scheme
Women are the biggest recipients of the low-income super tax offset, with the number of females eligible for the tax break increasing significantly around the time they start having children, new research has found.
Women starting a family benefit most from super scheme
Women are the biggest recipients of the low-income super tax offset, with the number of females eligible for the tax break increasing significantly around the time they start having children, new research has found.
Results of 174,000 customers data by AMP found that women between the ages of 18 and 54 are twice as likely to receive the low-income super tax offset than men.
The low-income tax offset effectively provides a tax refund for low-income earners straight into their super fund up to $500 per financial year, eligible for people earning under $37,000 or less saving into their super.
John Perri, AMP’s technical strategy manager, said the results show that the tax offset is helping Aussies on a lower income get ahead.
“We know women retire with less super than men due to a range of factors. Women are more likely than men to take time out of the workforce to care for small children and often return to part-time lower-paid roles, where they haven’t had the benefit of pay increases and promotions while they’ve been on leave.
“Although the low-income tax offset is a small amount, every little bit counts when it comes to increasing your superannuation balance.”
“Super is built on compounding interest, so the more you contribute at an early age, the more likely your balance will grow over time, subject to market fluctuations,” Mr Perri explained.
The results also revealed younger Australians on a lower income are taking advantage of the scheme.
“It’s interesting to see Generation Z are also benefiting from the low-income tax offset. These Australians have time on their side when it comes to saving into super.”
A $500 tax offset today could be worth significantly more when you consider the impact of compounding interest over the next four or five decades,” Mr Perri concluded.
RELATED ARTICLES
About the author
About the author
Superannuation
Aware Super takes on Australia's gender retirement gap, aiming for financial equality
Aware Super, one of Australia's largest superannuation funds with a 70 per cent female membership, is on a mission to close the gender gap that sees women retire with 30 per cent less super than men ...Read more
Superannuation
Age Pension increase prompts Australians to review their finances
The increase in the Age Pension, which takes effect today, should serve as a prompt for many older Australians to ensure they're maximizing their income as cost-of-living pressures persist, according ...Read more
Superannuation
Retirement reimagined as Australian optimism meets inflation worries in 2023 super fund insights
The latest reports on retirement confidence among Australians present a spectrum of sentiments, with fresh data revealing surprising optimism in some quarters while exposing underlying concerns in ...Read more
Superannuation
Aussie retirees face a shortfall as ideal retirement nest egg doubles what super will deliver
As Australians look towards retirement, the desired superannuation balance that many believe will ensure a comfortable retirement has significantly outpaced what they are on track to actually save. Read more
Superannuation
Super funds eye 6.5% return in 2023, despite a rocky start
As the year draws closer to its climax, Chant West unveils its projection for super funds in what can only be described as a year of economic ebbs and flows. Read more
Superannuation
A deep dive into Australia’s superannuation system
Australia has a robust retirement savings system known as superannuation designed to provide financial security to Australians in their post-work years. Read more
Superannuation
50,000 super fund members impacted by data breach
Around 50,000 member records were impacted by the breach that took place earlier this month. Read more
Superannuation
Two super funds tipped to reach $1tn by 2040
KPMG has released the findings from a new review. Read more
Superannuation
Aware Super takes on Australia's gender retirement gap, aiming for financial equality
Aware Super, one of Australia's largest superannuation funds with a 70 per cent female membership, is on a mission to close the gender gap that sees women retire with 30 per cent less super than men ...Read more
Superannuation
Age Pension increase prompts Australians to review their finances
The increase in the Age Pension, which takes effect today, should serve as a prompt for many older Australians to ensure they're maximizing their income as cost-of-living pressures persist, according ...Read more
Superannuation
Retirement reimagined as Australian optimism meets inflation worries in 2023 super fund insights
The latest reports on retirement confidence among Australians present a spectrum of sentiments, with fresh data revealing surprising optimism in some quarters while exposing underlying concerns in ...Read more
Superannuation
Aussie retirees face a shortfall as ideal retirement nest egg doubles what super will deliver
As Australians look towards retirement, the desired superannuation balance that many believe will ensure a comfortable retirement has significantly outpaced what they are on track to actually save. Read more
Superannuation
Super funds eye 6.5% return in 2023, despite a rocky start
As the year draws closer to its climax, Chant West unveils its projection for super funds in what can only be described as a year of economic ebbs and flows. Read more
Superannuation
A deep dive into Australia’s superannuation system
Australia has a robust retirement savings system known as superannuation designed to provide financial security to Australians in their post-work years. Read more
Superannuation
50,000 super fund members impacted by data breach
Around 50,000 member records were impacted by the breach that took place earlier this month. Read more
Superannuation
Two super funds tipped to reach $1tn by 2040
KPMG has released the findings from a new review. Read more
