There will always be concerns that future governments will be unable to resist the temptation to fiddle with the super rules. 

However, we can take comfort from the knowledge that it will always be in the interests of any government to encourage people to save for their retirement. The reason is simple - those same governments will have to pay for the retirements of those who don’t save. 

Back in early April this column suggested that workers who are keen to build up their super balances and have savings in the bank consider sacrificing the whole of their salary into superannuation for the remaining weeks of the financial year to June 30. 

That strategy is still well worth doing for those in the right circumstances. Sacrificing salary for the final month of the year will see that income amount taxed at only 15 per cent instead of the individual’s marginal tax rate, usually 34.5 or 39 per cent. That’s a big saving.

June is also the time of year when self-employed people should be considering super contributions. For them such payments are tax deductible, known as concessional contributions. The limits are $30,000 for those under age 50, and $35,000 for those who turn 50 during the year or are older. 

Tradesmen, farmers, contractors, truck owner drivers, shop keepers, consultants, taxi drivers and many others are usually self-employed. It is very important for these people to put at least some money into super each year even though they may not feel they have much spare cash available. 

This is because their employee friends all have regular, compulsory employer super contributions made for them, ensuring they will have substantial savings at retirement time. If self-employed people do not contribute to super they run the risk of a low income retirement.

Many small business owners are not self-employed but operate through company structures. At this time of year they should be planning to meet with their accountants to estimate profits for the year and plan an appropriate level of tax deductible super contributions for themselves by their companies. 

The government co-contribution scheme makes a small but important benefit available to all lower income workers. If they contribute $1000 of after-tax savings to superannuation they qualify to receive up to $500 contribution from the government into their super. 

Workers whose taxable income is below $34,488 receive the full $500 while those with incomes up to $49,488 receive a part payment. While these amounts may seem small, contributions of $1000 and $500 collected regularly every year build up remarkably over a full career. 

It is possible to make non-concessional contributions to super, ones which are not eligible for tax deductions. These have a limit of $180,000 per year. People under age 65 can also bring forward up to two years’ contributions. 

Therefore $540,000 can be put in, as long as no more is contributed until three years have passed. These limits are designed to enable people who have received inheritances or sold businesses or other assets to contribute larger lump sums to super. 

Individuals who have large amounts available can maximise contributions using two financial years. For example they could contribute $180,000 now and then another $540,000 in July. If there is a couple involved contributions can be made for each.

Balances held within super funds can be invested in any type of assets the investor chooses. Income earned on investments will be taxed at only 15 per cent, instead of marginal rates. Capital gains will be taxed at just 10 per cent. This makes super a very efficient means of saving for retirement.