Personal contributions
To boost your super account, you can make personal contributions in two ways:
- 1By you
- 2By your employer
1. After-tax contributions made by you (non-concessional)
If you transfer money into your super account (by BPAY), it’s an “after-tax” contribution. This method give you control of when and how much you contribute.
Why “after tax”?
Your employer deducts PAYG tax from your wages before you’re paid. So, what’s left is after-tax income. You have already paid tax on the money that you’re using to make the transfer.
How do I make an after-tax contribution?
Log in and go to the “Make a contribution” page and get your BPAY details under personal contributions (the first option). Use the BPAY details to transfer the money into your super account.
As of 1 July 2024, the non-concessional cap is $120,000 per financial year. This cap can vary depending on your circumstances, read more on the ATO website.
Benefits of making after-tax contributions could include:
- ●tax benefits
- ●potential eligibility for the government co-contribution
- ●boosting your super balance
You may be able to claim a tax deduction on these contributions - see the last section on this page.
Total wages
minus tax
= After-tax income
After-tax super contribution
2. Before-tax contributions made by your employer (concessional)
You can ask your employer to pay some of your pre-tax wages into your super account. This is called “salary sacrifice”.
These contributions are called “concessional” and are taxed at 15%. Other concessional contributions are contributions that you have already claimed a tax deduction on.
This might be lower than your marginal tax rate. So, you might pay less tax (i.e. you are getting a tax concession) while boosting your super balance.
As of 1 July 2024, the cap for concessional contributions is $30,000 per financial year. This cap includes your normal employer super payments which are also made pre-tax.
For example, if your employer has contributed $10,000 in super, then you can contribute another $20,000 to your account as a concessional contribution.
Benefits of making concessional contributions could include:
- ●paying a lower tax rate
- ●boosting your super balance
Total wages
minus before-tax super contribution
minus tax
= After-tax income
Claiming a tax deduction
You could be eligible for a tax deduction made on after-tax (non-concessional) personal contributions that you make. To see if you are eligible, read the requirements on the ATO website.
If you are choosing to claim a tax deduction on your personal contribution, you will not be eligible for the government co-contribution. Read more about the government co-contribution.
We’ve made it easy to make a claim
There are two parts:
1. Complete a “Notice of intent to claim”.
- ●If you have made a personal contribution, you will be able to log in and under ‘Make a contribution’, you will see the notice available after 1 July for the financial year that has just passed.
- ●Complete the notice online.
- ●You will receive an email with information to complete your tax return
2. Add the deduction when completing your tax return.