Contribution Options

There is two types of super contributions: concessional and non-concessional.

Concessional Contributions

Concessional contributions are contributions made before tax, and there are three types:

• Compulsory contributions which are made on behalf of you by your employer under the Superannuation Guarantee Scheme
• Salary sacrifice contributions which are voluntary contributions your employer pays out of your before-tax income. You need to nominate to your employer to do this, and
• Tax-deductible personal contributions which are voluntary contributions that you can make from after-tax income and then apply for a tax deduction.

Non-Concessional Contributions

Non-concessional contributions are contributions made into your super fund from after-tax funds and are not claimable as a tax deductible expense.

Before you make any contributions you need to be aware that there is limits to the amounts you can contribute on an annual basis.

Below is a table of the before-tax and after-tax contribution annual limits.

* As at 1 July of the financial year in which the contribution is made.

From the 2019-20 financial year onwards you may be able to put more into super at a concessional rate of tax by using catch-up concessional contributions, if you’re eligible.

Please note the following:

• If you exceed the super contributions cap, additional tax and penalties may apply.
• If you have super assets of $1.6 million or more as at 30 June of the previous financial year, you can’t make additional after-tax contributions to your super, or you may be penalised.
• Downsizer Contribution Option – If you’re 65 or over at the time of making a contribution, a work test must be satisfied. Australians aged 65 and over, can make an after-tax ‘downsizer’ contribution to their super of up to $300,000 using the proceeds from the sale of their main residence, regardless of their work status, super balance, or contributions history.
• Tax deductions on personal after-tax contributions – Personal after-tax super contributions (non-concessional contributions) made since 1 July 2017 can be claimed as a tax deduction when you’re doing your tax return, lowering your taxable income. This results in roughly the same tax benefit as concessional contributions, which are only taxed at 15%.
• Co-contributions from the government – If you have lower income you will be eligible for a government contribution:
  • If your total income is equal to or less than $37,697 and you make personal after-tax contributions of $1,000 (and meet other eligibility criteria), you could receive the maximum co-contribution of $500.
  • If your total income is between $37,697 and $52,697, your maximum entitlement will reduce progressively as your income rises. These figures are indexed each year and may change in the future.
• Low income super tax offset – If you earn $37,000 or less a year, and you (or your employer) make concessional super contributions, the government may refund the tax you paid on those contributions back into your super account, up to a maximum of $500 per year.
• Spouse contributions tax offset – If your spouse (husband, wife, or de facto) is a low-to-middle-income earner or not working, you might be eligible for a tax offset if you make after-tax contributions into their super. To be entitled to this tax offset, eligibility rules apply, and the receiving spouse must be under the age of 65, or if they’re aged 65 to 69, they must meet work test requirements.

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