Superannuation contributions

Superannuation contributions

An important way to achieve the lifestyle you want in retirement

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After-tax contributions

An after-tax contribution, also called a non-concessional contribution is a payment into your super from your after-tax income. This money is not taxed as you’ve already paid tax on it at your normal rate. There’s a $100,000 limit per financial year on the amount of after-tax contributions you can make. If you are under age 65, you can also ‘bring forward’ the next two years’ worth of after-tax contributions, and make up to $300,000 contribution in a financial year.

Note: You can only make after-tax contributions provided your ‘total super balance’ (ie balance in super, including income streams) is less than $1.6 million as at 30 June 2017. 

What if I’m self-employed?

You can make an after-tax contribution, and if you have assessable income, you may also claim some or all of it as a tax deduction, up to your ‘before-tax contribution’ cap (see below). Also, if claiming a tax deduction, then that amount will only be taxed at a 15%* rate. You’ll need to fill in a notice of intent form for us before you submit a tax return.

Government co-contributions

If you're a low or middle-income earner and make after-tax contributions to your super fund, you may be eligible to receive a co-contribution, which is where the government will make a contribution of up to $500 into your super fund.

If your total income is equal to or less than $36,813 and you make personal contributions of $1,000 to your super account, you’ll receive the maximum co-contribution of $500.

If your total income is between $36,813 and $51,813 your maximum entitlement will reduce progressively as your income rises. 

Note, other eligibility criteria does apply and you will not receive any co-contribution if your income is equal to or greater than the higher income threshold. 

 

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Before-tax contributions

A before-tax contribution, also known a concessional contribution is any money you put into your superannuation from your before-tax income. It’ll only be taxed 15%*, provided that you don’t exceed annual limits set by the government. Currently the annual cap is $25,000 pa. 

To find out more about annual limits visit the ATO website or speak to a financial adviser.

The Superannuation guarantee scheme

The Super guarantee (SG) scheme is the 9.5% of your salary that your employer must pay into your super from your before-tax salary. It’s been proposed to gradually increase to 12% by 2025-26. If you’re not sure what your employer is paying, check with your payroll department.

Learn more about the superannuation guarantee scheme and employer super obligations.

Salary sacrifice

A salary sacrifice is when you make a before-tax contribution to your super. You choose to ‘sacrifice’ part of your before-tax salary, or bonus, and have your employer add it directly to your super account. This is in addition to the compulsory SG amount your employer is required to contribute.

One of the benefits of salary sacrifice contributions is that they are generally taxed in the super fund at 15%* instead of your marginal tax rate.

Read more about how salary sacrificing works or check with your employer if salary sacrifice is available.

The low income super taxation offset (LISTO)

If you earn $37,000 or less a year and either your employer or you put some before-tax money into your super that year, then you may get an automatic payment into your super of up to $500 per year from the Australian Taxation Office (ATO).  Find out more about the low income super contribution.

 

Salary sacrifice calculator

Compare the effect on take home pay and super by making personal super contributions, using either salary sacrifice or an after-tax contribution. 

Calculate now

Spouse contributions

Want to help increase your spouse’s superannuation? If your spouse earns up to $40,000 a year and you put in as much as $3,000 into their super, this can get you an 18% tax offset — saving you up to $540 in tax. Find out more about tax offsets on spouse contributions.

Split your super contribution

You can split up to 85% of your before-tax super contribution with your spouse. This can help their super grow and possibly reduce the tax you’ll pay as well if you make salary sacrifice contributions. The types of contributions you can split include your SG and salary sacrifice.

*30% if you earn over $250,000 pa.

Where to go for more information

If you don’t have an adviser, you can give AMP a call on 131 267 or use our find an adviser tool to locate a professional in your area.

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Important information

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It’s important to consider your particular circumstances and read the relevant product disclosure statement before deciding what’s right for you. This information hasn’t taken your circumstances into account. 

This information is provided by AMP Life Limited. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relation to products and services provided to you. All information on this website is subject to change without notice.