- Peak weekend of activity ahead of tax time predicted to be 20-21 June, with voluntary super contributions likely to quadruple for the month.
- New research suggests many still unlikely to act, with low awareness of tax benefits.
- 29% say cost of living pressures have affected their ability to manage their super.
- 57% say they would be more likely to take action if they had simple assistance, such as a step-by-step guide or nudge to act.
New HESTA research suggests Australians could miss out on taking advantage of super tax benefits ahead of June 30, with many unaware of actions they can take to improve their retirement outcomes. To encourage action, HESTA is declaring Saturday 20 June as 'Super Saturday' – urging Australians to take just one hour to get on top of their super. The date coincides with tax time activity forecast to peak in the second last weekend of June.
The new research1 has found that 58% of members are not planning to take advantage of any superannuation tax benefits before 30 June, with many not clear on options available to them. For those still in the workforce, around one in three pointed to cost-of-living impacts as a key barrier.
HESTA CEO Debby Blakey said the findings were a wake-up call and the reason HESTA is creating a dedicated day to help Australians to act.
"Super Saturday is about making sure people are aware of the opportunities available to them that can make a real difference to their retirement," Ms Blakey said.
"Given cost-of-living pressures, top-up contributions will not be suitable for everyone, but there are other options and it's a great opportunity to check in on your super. Small steps can help, like seeing if you're eligible for the government co-contribution, consolidating old accounts or considering your retirement strategy. Understanding where you are now and where you are heading builds confidence and supports future decision-making.
"We've launched Super Saturday as our research suggests people are more likely to act if they have access to simple guidance and encouragement. As the tax time window closes, we want more Australians to take the opportunity to put their financial futures first."
Member activity typically surges in June compared to the rest of the year, with prior years' data showing a quadrupling of voluntary contributions and six times the value of spousal contributions, as well as a 30% increase in salary sacrifice contributions. Year-on-year activity in June has been trending higher, with voluntary contributions and spousal contributions rising by over 20% for this month across the past two years2.
However, the new research shows there remains mixed awareness of the tax benefits available. Most of those surveyed knew of the option to salary sacrifice or make a personal after-tax contribution into their super, but awareness was well below 50% for all other options.
Despite many not planning to take action before 30 June, 57% said they would be more likely to if they had simple assistance. The top three most helpful supports were a step-by-step guide, a personalised nudge to act and a simple calculator.
Tips to consider on Super Saturday:
- Consider topping up your super: either through a personal after-tax contribution or personal deductible contribution3.Check your MyGov account for the amount that you may be able to contribute.
- Check if you're eligible for the government co-contribution: If you earn under the threshold, the government may contribute up to $500 to your super.
- Consider contribution splitting to transfer contributions between your super and your spouse's account.
- Consolidate multiple super accounts so you're not paying multiple sets of fees.4
- Check your balance, investment strategy and fund's planning tool so you know where you stand and where you are heading.
HESTA members can also access the Fund's Future Planner tool online. Visit hesta.com.au/super-saturday f
