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
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 Know the rules: Contributing to super over 65).
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.
Salary sacrifice and super: How does it work?
While the sacrificing bit might sound painful, salary sacrifice is really just about giving up something now to get a financial benefit later on. Often called salary packaging, many employees choose to set up these types of arrangements with their employer to forgo part of their salary or wages to help pay for a range ... Read more
What to do if you exceed your super contributions caps
When experts talk about super, they often warn about the importance of not going over your contributions caps, but you don’t always hear about what happens if you do. Although carefully monitoring the amount of contributions you or your employer makes into your super account each year is the wisest course of action, ... Read more
2018/2019 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
Beginner’s guide to making super contributions
Building a sizeable retirement nest egg can take some effort, but a recent study by Roy Morgan found only 18% of employees with super currently have more than the compulsory 9.5% of their salary or wages going into their super fund account. This is a significant drop from 2009, when nearly a quarter (23%) of workers ... Read more
Put your feet up? Making super contributions after retirement
Retiring today is not like the old days when you left a job and never looked back. These days Australians are fitter, more active and interested in new experiences and learning. Some people even decide to head back to the workforce after a few years. But retirement can have an important impact on your super, so you ... Read more
Know the rules: Contributing to super over 65
Once your 65th birthday rolls around, many people are keen to put their feet up and enjoy a well-earned rest. When they think about their super, it’s usually more about how to wisely spend their retirement nest egg than how to add to it. But just because you have hit 65 it doesn’t mean you shouldn’t consider making ... 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
Contribution splitting: How to boost your spouse’s super
Topping up your spouse’s retirement savings account with some of your own super contributions can be a great way to help them save for life after work – and possibly save yourself some tax in the process. Splitting your super contributions with your spouse can be sensible if your spouse is only working part-time or ... Read more
How super works: A beginners guide to superannuation
Simply put, superannuation (or super) is money you put in a super fund while you are working to provide income later in life when you retire. Given the average Australian can expect around 20 years of retirement, and the Age Pension is designed to provide only the most basic needs, the more you can save now the more ... Read more
Guide to in-specie transfers for SMSFs
In specie superannuation transfers (also known as off market transfers) are transfers of assets in and out of super funds, rather than actual transfers of money. In specie is a Latin phrase meaning “actual form”. An in specie transfer to or from a super fund is therefore the process of transferring an asset in or ... 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
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 ... 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
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