Managing Money Archives

Cashrewards vs Shopback- Cashback shopping sites

There are multiple ways that you can save money while doing online or offline shopping. The rewards that you gain could be either through discount, cash-back or points. In Australia, there are two primary online shopping rewards platforms- Cash rewards and Shopback. Even though there are other upcoming apps like PokitPal and Pricepal, Cashrewards and Shopback are the popular ones. Later I will explain to you why you shouldn't spread your spending through more than 2 apps. Who are Cashrewards and ShopBack? Cashrewards was founded in Sydney in 2014 by Andrew and Lorica …

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How does superannuation work

Superannuation is simply saving money in a trust for your retirement. If you are an employee, your employer will pay a certain percentage of your salary into your super account. Currently, the percentage is at 9.5% and will gradually increase to 12%. The money in the superannuation trust is also invested, so as it grows over the inflation and provide enough retirement fund when you retire. All super fund is managed under a trust. A trust is an agreement between a person or a company that holds assets for the benefit of others. Those who hold the assets are called a trustee and those who …

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Superannuation spouse contribution and tax offset

Spouse contribution helps to boost the superannuation fund of low income earning spouse or non-working spouse, the government has introduced spouse contribution so as an individual can contribute on behalf of their spouse. On contributing to your spouse’s super, you can benefit a maximum tax benefit of $540 when your spouse taxable income is less than $10,800 and the contributed amount is $3,000. If your spouse earns more than $10,800 the amount of tax offset reduces by 18 cents for every dollar. If your spouse income is more than $13,800 then the benefit ceases to exist. The tax offset can …

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Superannuation co-contribution and tax benefits

Super co-contribution is intended for low-income earners whose income is less than the upper-income threshold. The federal government is giving away money for any contribution in after-tax that is made to your super fund. The amount that the government pays you varies year to year, for year 2015/2016 you will receive 0.5 for every dollar you contribute up to $500 and if your income is at the $35,454. If you earn more than the low-end threshold the amount is reduced by 3.33 cents for every dollar you earn above the threshold. Co-contributions cut out once your total income exceeds upper …

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How are superannuation non-concessional contributions taxed

Non-concessional contributions are the voluntary contributions that you can make into your super account but the contribution is already taxed amount. To be eligible for Non-Concessional contributions your age needs to be under 75 years. Anyone under 65 years of age is eligible for non-concessional contribution within the cap limit. If you are above 65 and below 75 then you are eligible for non-concessional contribution within the cap subject to work test. The work test means that you are gainfully employed that is, self-employed or employed for gain or reward in any business, trade, …

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Superannuation salary sacrifice and personal contributions

Employees are permitted to contribute to their superannuation using salary sacrifice, this is where you ask your employer to pay your superannuation company without paying it to you. By sacrificing some of the amounts as a contribution to the super fund, you are reducing the amount of tax to 15%. The advantage is that your take-home pay is reduced and you will pay less tax. If your employer has no limit on the amount that you can salary sacrifice there are no limits on the amount you can do salary sacrifice. If you decide to enter an agreement with your employer to salary sacrifice then you …

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