Super SA Triple S is the compulsory superannuation fund for many South Australian Government employees including health professionals. Unlike most other super funds available to the general public, Super SA is constitutionally protected and therefore has a range of potential benefits for its members.
The major benefit is there are no restrictions on how much you can salary sacrifice each year to the fund, so long as you are not also contributing to another super fund. You can therefore salary sacrifice in excess of the normal $25,000 per annum limit without penalty, resulting in a significant tax advantage.
For example, John salary sacrifices $50,000 per annum into Super SA Triple S, resulting in taxation savings of $16,000 per annum.
The main disadvantage of Super SA Triple S is once you accumulate over $1.515 million in untaxed benefits (indexed each year) you are subject to a penalty tax on the excess amount of 47%.
To manage the lifetime cap, members can split some of their contributions to their spouse (even if the spouse is not a Super SA member) to help equalise their balances and thus gain access to a second $1.515 million cap.
Furthermore even if you reach the cap, you now have the ability to contribute to a different fund within Super SA that does not penalise you for future growth. Therefore reaching the cap is no longer a bad thing as long as you know what to do next.
We believe that any Super SA Triple S contributor who has excess cash flow should be reviewing their financial strategy to ensure they are taking the most advantage of this fund. There are strategies available that can save contributors tens of thousands of dollars whilst growing their retirement nest-egg.
If you were interested in reviewing your Super SA strategy or financial position generally, please feel free to contact your local William Buck Wealth Advisor