Simple super tips for new parents

5 July 2024

Growing your family is an exciting time with a lot of changes and adjustments. One thing on your mind is probably how this will affect your finances, including your super. Here are some tips to help guide you.

1. Add to your partner’s super¹

If you’re in a couple, you may want to consider how superannuation factors into your family’s broader financial goals. While you can’t merge your super accounts, partners can help boost each other’s super balance while one of you is on parental leave or earning less. There are a couple of ways to do this through spouse contributions:

• Your partner may be able to grow your super balance with a contribution from their take-home pay. This might benefit them too, as they may be eligible for a tax offset.
• There’s also the possibility of contribution splitting. To do this, your partner transfers some of their before-tax super into your account. The super they transfer must be from a before-tax source. This includes super added to their account by their employer, either as part of the 11.5% Super Guarantee or via a salary sacrifice arrangement.

2. Make sure your insurance fits your growing family’s needs

When it comes to providing security for your family, insurance through your super² can provide a safety net if the unexpected happens. And the cost of your cover is paid out of your super account, not your take home pay.

Superannuation funds generally offer basic cover when you open an account³. A simple review of your insurance can give you peace of mind. Make sure any changes to your lifestyle are considered in your level of insurance cover too. A growing family can mean moving to a bigger home, buying a bigger car, taking time out of work or changing jobs.

In some circumstances, insurance cover linked to your super will lapse if there are no contributions or rollovers made into your account. Be sure to have a look at the insurance cover you have through your super and check the terms and conditions that might apply if you’re taking time off paid work.

3. Nominate a beneficiary

We know it can be hard to think about, but you should consider nominating a beneficiary to receive your super and any insurance entitlements, if you were to pass away.

It’s important to keep your nominations up to date. A good time to review your beneficiaries is when you experience a big life event, such as having children.

4. Find and consider consolidating your super

If you’ve ever had more than one job, you could have some lost or unclaimed super that you don’t know about. According to the Australian Tax Office (ATO), Australians had $16 billion in lost and ATO-held super as of 30 June 2023⁴.

You can find any lost super you may have using the ATO online services. Alternatively, if you’re an AustralianSuper member, we can help you track down any lost super.

You might want to consolidate any lost super you find⁵. This could save you on fees, avoid duplicate insurance policies, and make easier to get visibility of your balance. Knowing how much you have makes it easier to decide if you’ll need to top up your balance.

5. Make an after-tax payment to your own super

Another way you can help increase your balance while you’re on parental leave is with after-tax payments¹. These are extra super contributions you make from money you’ve already paid tax on, like your after-tax salary, an inheritance or a tax refund.

You might be able to claim a tax deduction on these contributions if you meet certain requirements.

6. See if you’re eligible for a super co-contribution

If you’re on parental leave, you might be earning less than normal. If this is the case, you may be eligible for a super co-contribution from the Australian Government.

The government will match up to 50 cents for every $1 you add to your super from your after-tax income (up to a maximum of $500 a year) if you:

• make after-tax contributions to your super,
• earn $60,400 or less a year before tax (financial year 2024-25), and
• meet other eligibility criteria.

You don't need to apply for government contributions. If you're eligible and your fund has your tax file number (TFN), it will be paid automatically into to your super account after you lodge your tax return.

Help is available

AustralianSuper provides access to a range of support and advice options⁶ to help you make the most of your super no matter your circumstances. From articles and fact sheets to calculators and webinars, we’re committed to helping you better understand and make the most of your super.