You can make two types of superannuation contributions – concessional (before-tax) contributions and non-concessional (after-tax) contributions – and each type of contribution has a separate limit known as a contributions cap (see text and tables below). A concessional contribution is a before-tax contribution made ... Read more
Making superannuation contributions
A Super Guide
Superannuation contributions (including personal contributions and employer contributions) are a cash amount, or in some cases an asset, that is contributed to a complying superannuation fund, on behalf of an individual under the age of 75. Super contributions and investment earnings on those contributions are the key to accumulating a substantial retirement nest egg.
You can make two types of superannuation contributions to your super fund. You, or your employer, can make concessional (before-tax) contributions to your super fund. You, or your spouse, or the federal government, can make non-concessional (after-tax) contributions to your super fund.
You have two caps – a concessional contributions cap ($25,000 for the 2017/2018 year, and for the 2018/2019 year), and a non-concessional contributions cap ($100,000 for the 2017/2018 year, or for the 2018/2019 year).
Note: If you are aged 65 years or over, you must satisfy a work test before making super contributions (see SuperGuide article For over-65s: Ten tips when making super contributions).
Important: The Total Superannuation Balance is a new restriction on super contributions. For the 2017/2018 and 2018/2019 year, if you have more than $1.6 million or more in super, you cannot make non-concessional (after-tax) contributions, receive spouse contributions, or receive the government co-contribution (see SuperGuide article Total Superannuation Balance: 7 reasons why your TSB matters).
In this section, discover how much your employer must pay into your superannuation fund, how much you can contribute, the tax-free bonus the federal government gives you, contributions strategies and everything you need to know about making personal superannuation contributions. Find out how you can make concessional (before-tax) contributions, non-concessional (after-tax) contributions, receive co-contributions and more.
Click on the links directly below to access the following topics about making superannuation contributions:
- Superannuation contributions strategies
- 2018/2019 Contributions Guides
- Super contributions caps
- Superannuation Guarantee (SG)
- Salary sacrifice and super
- Tax-deductible super contributions
- Spouse contributions
- Total superannuation balance
- Contributions tax
- Excess contributions
As a starting point you may want to consider reading the following SuperGuide articles:
Set out below are all SuperGuide articles referring to Making superannuation contributions.
Contributions caps relate to financial years, not calendar years
Q: I understand the three-year bring-forward rule now allows you to contribute up to $300,000 in after-tax contributions. My question is: What date does the second three-year period start? For example, if I contributed $300,000 on 28 Dec 2018, does that mean I can contribute another $300,000 on or after 1 July 2021 (or ... Read more
Bring-forward rule: A definitive super guide
Note: The information in this article relates to the 2018/2019 financial year and the 2017/2018 financial year. The bring-forward rule allows an eligible Australian to contribute up to 3 years’ worth of after-tax contributions (non-concessional contributions) in one year, representing the annual non-concessional cap ... Read more
Your 2018/2019 guide to non-concessional (after-tax) contributions
Note: This article explains the rules applicable to non-concessional contributions for the 2018/2019 year (and for the 2017/2018 year, and later in the article explains the rules applicable for the 2016/2017 year). See also SuperGuide articles New normal: $100,000 non-concessional contributions cap and Non-concessional ... Read more
Cashing in on the co-contribution rules (2018/2019 year)
Note: This article explains the co-contribution rules for the 2018/2019 year (for the 2017/2018 year, and also for the 2016/2017 year). The federal government is giving away money to anyone who makes a non-concessional (after-tax) contribution to their super fund, and who earns less than $52,697 a year for the ... Read more
Super concessional (before-tax) contributions: 2018/2019 survival guide
Note: This article explains the rules applicable to concessional contributions for the 2018/2019 year (and for the 2017/2018 year, and later in the article, also explains the rules applicable for the 2016/2017 year). Superannuation contributions can be divided into two types — concessional (before-tax) contributions ... Read more
Over-65s work test: How does it operate?
Super alert! Taking effect from July 2019 , the federal government has introduced a one-year exemption from the over-65s work test for Australians aged 65 to 74 with superannuation balances of less than $300,000. What this means is that, for the first year an individual doesn’t meet work test requirement, an ... Read more
SMSF contributions: Your employer and fund must use SuperStream
Note: SMSF trustees should have been ready to accept SuperStream contributions by 3 November 2014, or at the very latest by 30 June 2015. Employers with 20 or more employees were required to be set up for SuperStream by 30 June 2015 (although this was extended to 31 October 2015). Employers with 19 or fewer employees ... Read more
For over-65s: Ten tips when making super contributions
Australians can make voluntary superannuation contributions up to the age of 74 (that is, before you turn 75), and these super contributions can be concessional (before-tax) or non-concessional (after-tax) contributions. If you’re aged 65 or over however, then you must satisfy a work test, if you intend to make super ... Read more
SMSF pension: After making super contributions, when can I convert to another pension?
Q: I am 67 and work part time, so I qualify to make concessional (before-tax) contributions to our SMSF. I am already receiving an account-based pension from my SMSF. The new contributions I make will have to go into an accumulation account. How long do I have to wait before our SMSF can pay another account based ... Read more
Turning 65 and super: A Super Guide
Anyone aged 65 or over can access super benefits without retiring or satisfying any other special condition of release. Turning 65 is a condition of release. Unless you’re in a public sector fund, such super benefits will be tax-free when paid on or after the age of 60. For a general summary of the super and ... Read more
How do I transfer a UK pension to an Australian super fund?
Recent changes to legislation have made it more difficult to transfer UK pensions to Australian superannuation funds. These changes could affect thousands of people who have worked in the UK for any period of time and who want to transfer their accumulated pension savings to an Australian super fund. Who can ... Read more
