Unique Benefits of Super SA ‘Triple S’ Accumulation Fund for South Australian Government Employees
Unlike standard retail and industry super funds, Super SA ‘Triple S’ offers some unique benefits for its members as a constitutionally protected super fund.
If you are a South Australian Government employee approaching retirement, or simply wanting to boost your super in a tax-effective manner, read on to learn more.
Super SA ‘Triple S’ offers its members the possibility of salary sacrificing more pre-tax income into super in the years leading up to retirement, as members are not restricted to standard concessional contributions caps (currently $27,500 p.a. - including SG). Instead, members have the ability to salary sacrifice as much of their pre-tax employment income as they desire (up to the lifetime cap of $1,705 million for FY 2023/24).
Whilst some people don’t have the cashflow flexibility to sacrifice too much of their income to super, for couples and those with little to no mortgage debt, the potential benefits and tax savings can be substantial.
Let’s look at an example:
John (65) and Sue (64), both work for SA Health as business analysts.
They have been married for thirty years, and have paid down their primary home mortgage. Both earn over $100,000 p.a. (gross), and have been building up cash savings, as their income surpasses their monthly spending. They are planning to retire in the next 3 years.
Instead of continuing to accumulate after tax monies in the bank (which offers low rates of return), they come to see Humble Goode, to generate a tax effective pre-retirement plan.
After going through their personal circumstances, Humble Goode discover that John and Sue can meet their living expenses from one salary alone, so they put together a plan to help structure John and Sue for their pending retirement.
Sue salary sacrifices the majority of her salary (down to the tax-free threshold) into her ‘Triple S’ super. By doing this, she boosts her super by over $80,000 p.a., and reduces her annual tax bill from $22,967 to nil.
Over the three years until retirement, Sue’s super balance increases by over $250,000 (including growth) and her and John save over $60,000 in reduced income tax. The strategy extends their retirement cashflow longevity by over 15 years, leading to a more comfortable retirement, with spare cash to go on holidays, and their ability to help their adult kids with mortgage deposits.
Extra Benefits:
In addition to the benefits listed above, funds contributed to ‘Triple S’ aren’t taxed at the standard 15% on entry to super, but rather at the exit, when funds are withdrawn from accumulation and moved into an account-based pension, or used for other purposes. Again, this benefits members as they have a larger pool of super assets growing over time, compared to a standard taxable super fund.
If you are a South Australian Government employee who is wanting to maximise the opportunities available to you, why not give Humble Goode Financial a call to book a time to review your finances. We have helped hundreds of state government employees structure themselves in the most tax-effective manner in the years leading up to retirement, which can have a substantial impact on retirement wealth and cashflow.
General Advice Warning:The information on this website is intended to be general in nature and is not personal financial product advice. It does not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs. In particular, you should seek independent financial advice and read the relevant product disclosure statement (PDS) or other offer document prior to making an investment decision in relation to a financial product.