3 March 2025
Here’s the sort of thing we hear a lot of:
‘Retirement is ages away. Decades away. Too far away to even think about. It’s so annoying that I can’t even benefit from it yet.’
Here’s some good news for you: there are circumstances where you can benefit from your super sooner. Here are four ways to benefit right now from that nice little nest egg you’re building up.
1. Help with your first home
You can save for the purchase of your first home through your super using the First Home Super Saver Scheme (FHSSS), designed to help get you on the property ladder.
You can make voluntary contributions towards this scheme of up to $15,000 per year and up to a maximum value of $50,000. You can withdraw up to $50,000 of your voluntary contributions, plus the associated earnings, to help buy a home in Australia.
Super can be an efficient way to save towards your first home because contributions to your super are taxed at 15%, which is generally less than your marginal income tax rate – letting you grow your savings faster.
Find out more about the FHSSS.
2. Financial advice
Your membership with Child Care Super includes financial advice about your super at no extra cost. Our team of Coaches can help you maximise your future wealth.
Research tells us that the main reason people don’t seek financial advice is because they think they don’t have enough money – or they just don’t get around to it. But our coaches are here to take all those issues away.
Even if your balance is low and your time is precious, your Child Care Super Coach can provide advice about your super as part of your membership. Ask us about contributing to your account, your investments or insurance, no matter your age, stage of life or income.
It’s as simple as calling 1300 COACH 9 (1300 262 249) or emailing coach@childcaresuper.com.au.
3. Pay less tax
Sounds deliciously sneaky, right? But the government knows more people becoming self-funded retirees is better for the national piggy bank because it means less people relying on the aged pension. That’s why they give us better tax rates for the money we put in super.
The tax rate on your before-tax contributions is only 15%. Contributions are limited to $30,000 per financial year to receive this lower tax rate and include both your employer Super Guarantee payments as well as any salary sacrifice contributions. Contributing to super can help reduce the amount of tax you pay (as long as you stay below this limit).
Once you’ve reached your 60th birthday, you can use a Transition to Retirement account as a way to access tax-free income while also adding to your super balance by continuing to make contributions to your super. This can be a great way to take advantage of the low 15% tax rate, so is definitely worth investigating.
Find out more about how salary sacrifice works.
4. Insurance protection
Most super funds offer some level of insurance, and the premiums are paid from your super rather than your bank account.
When you’re younger, insurance cover can protect you should something happen that impacts your ability to work, and can also provide a safety net for family and loved ones. This is an asset, because the level of cover you have as part of your super is likely to be higher than your super balance when you are starting out.
As you get older and closer to retirement, you may not need the same level of income protection because you may have enough money in your super should you have to stop working, so you may be able to lower the value of your insurance.
Right now, your Child Care Super can offer you:
Life insurance, paid in the event of your death, with cover available until age 70.
Total and Permanent Disablement insurance which gives you a lump sum payment if you were to become permanently unwell or incapacitated.
Income Protection insurance, which gives you a monthly income if you become unable to work for a period of time.
Want to check in on your insurance? Log in to your Child Care Super account and head to ‘Insurance in super’ to check your level of cover. Reach out to one of our Coaches to discuss your cover or whether insurance could be worth it for you.