Knowing how much you have in your super account and if your employer has been making regular contributions are important pieces of information when it comes to managing your financial affairs. That’s now much easier to do thanks to upgrades to the ATO’s online services and the government’s myGov portal. By linking your ... Read more
Making superannuation contributions
A Super Guide
There are two basic types of super contributions you can make: concessional and non-concessional. Concessional contributions are made from before-tax income and are taxed at 15% in your super fund. Non-concessional contributions are made from after-tax income and are not taxed in your super fund.
Common examples of concessional contributions include:
- compulsory employer superannuation guarantee contributions,
- salary sacrifice arrangements, and
- any personal super contributions that you claim as a tax deduction.
Common examples of non-concessional contributions include:
- voluntary additional payments made from your take-home pay,
- any made on behalf of your spouse (married or de facto),
- a government co-contribution, and
- the Low Income Super Tax Offset (LISTO).
There are annual caps (limits) on the amount of concessional and non-concessional contributions you can make. If you exceed these limits, you’ll be liable to pay extra tax.
The concessional contributions cap is currently $25,000 per year (unless you are eligible to use the carry-forward rule), and the non-concessional cap is $100,000 (unless you are eligible to use the bring-forward rule).
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
Learn more about making super contributions in the following key SuperGuide articles:
Set out below are all SuperGuide articles that relate to Making superannuation contributions.
Guide to tax-deductible superannuation contributions
If you’ve got cash to spare and would like to boost your retirement savings, then making a tax-deductible super contribution is a great way to get the maximum bang for your buck. Yes, that’s right. You can boost your super and get a tax deduction to sweeten the deal. But as with everything to do with super, there are ... Read more
Why big super funds diversify and what you can learn from it
It’s a common saying that we shouldn’t put ‘all our eggs in one basket’. Although it’s a lesson many smaller investors and super savers forget, it’s one large super funds always follow. So, why are large super funds so committed to diversification and what are the lessons smaller investors can learn from ... Read more
Which Australian super funds accept transfers from Kiwisaver accounts?
If you have KiwiSaver savings, you can voluntarily transfer them to an Australian super fund under the provisions of a Trans-Tasman Retirement Savings Portability scheme that was introduced on July 1, 2013. Consolidating your funds in this way can help you to avoid paying multiple fees on your retirement savings. ... Read more
The pros and cons of investing your inheritance into super
Receiving an inheritance is usually a mix of emotions. Although you’re happy about the improvement to your finances, it’s often coupled with sadness about the loss of a family member or friend. It also brings lots of confusion about the best way to manage the bequest. While your first thought may be to pay off your ... Read more
2019/2020 guide to non-concessional contributions (after-tax super contributions)
Most employees know their employer is helping to build their retirement savings by making regular contributions – like the Super Guarantee (SG) – into their super account as part of their salary package. These contributions are taxed concessionally – or at a special low rate – of 15% to encourage Australians to save ... Read more
Your simple guide to Superannuation Guarantee (SG) contributions
As employees, most of us see the regular note on our payment summary listing the amount for our employer’s Superannuation Guarantee (SG) contribution into our super account and rarely give it much thought. To help you understand it a little better, here’s SuperGuide’s simple explanation of the SG and what it means for ... Read more
Work test: Making super contributions over 65
Reaching age 65 is one of life’s big milestones, but unfortunately, it does make putting money into your super account a bit more difficult. Instead of just being able to make an electronic payment straight into your super account, you need to prove you are actually ‘working’ as well. If you are aged 65-74, you must ... Read more
2019/2020 guide to concessional contributions (before-tax super contributions)
Although it can be difficult getting your head around all the different types of super contributions that go into your super account, concessional contributions are the ones you are mostly likely to have and are pretty straightforward to understand. Concessional contributions – what’s that mean? Concessional ... Read more
A super guide to understanding the bring-forward rule
Putting money into your super account is easy. But to ensure you don’t take too much advantage of the generous tax benefits within the super system, the government has progressively tightened up the rules around making contributions. One way to get some extra money into your super account is by using a ‘bring-forward’ ... Read more
Carry-forward contributions: How your unused contribution limits can help you catch up
Feel like you’ve missed the boat when it comes to your retirement savings? Carry-forward super contributions could be the answer for many Australians looking to boost the balance in their super account. What are carry-forward contributions? Carry-forward contributions are not a new type of contribution, they are simply ... Read more
What is the maximum super contribution base for 2019/2020?
The Superannuation Guarantee (SG) is the name for the contribution your employer makes to your super fund on your behalf. The current SG contribution rate is 9.5% of your earnings up to a limit called the maximum super contribution base (MSCB). If you earn above that limit in a particular quarter, your employer is not ... Read more
SMSF housekeeping: Trustee checklist for 2019/2020
The past few years have seen SMSF trustees kept busy implementing numerous legislative modifications to the super system, plus the major reform package commencing on 1 July 2017. Unfortunately, this financial year seems unlikely to be any different. With the new Morrison Government announcing plans for yet another ... Read more
Gaining from the government: How you can score a co-contribution freebie
Free money from the Government is a pretty rare thing and most Aussies would be willing to go a bit out of their way to try and get some, but one of the easiest routes to those extra bucks is often overlooked. One of the simplest ways is to invest a few extra dollars into your super account and take advantage of the ... Read more
The rules of superannuation: Your guide for 2019/2020
When you mention super, most people shake their head and mutter about the constant rule changes. Looking back over the past few years it’s a fair comment, with many significant changes occurring – and many more proposed but never legislated. If you are wondering how those changes have affected your super and ... Read more