Making contributions 

  

Contributions fall into two groups, concessional contributions and non-concessional contributions. Generally:

  • Concessional contributions are before tax contributions paid by employers (including superannuation guarantee and salary sacrifice contributions).
  • Non-concessional contributions are personal after-tax contributions.
How much you can contribute, when you can contribute and the tax on contributions depends on:
 

1. If your fund has your tax file number

2. How old you are and the type of contribution you would like to make, and

3. How old you are and the number of hours you work 

Tax on contributions
 
Contribution caps 2011-2012
How to make contributions to First State Super 
Other issues

Concessional contributions

Superannuation guarantee (SG) contributions: Legislation generally requires that your employer contributes 9% of your salary into super
  • 15% provision for tax is deducted from concessional contributions when allocated to your account
  • 31.5% additional tax on contributions if member TFN not held by the fund
  • 31.5% additional tax on contributions in excess of the cap
  • $25,000 if less than age 50 years old
  • $50,000 if 50 years old or more (ends 30 June 2012)
  • SG contributions cease at age 70
  • Maximum earnings base limit for each quarter in the 2011–12 financial year is $43,820.
Mandated contributions: Compulsory employer contributions made under an industrial award or certified agreement
  • See above
  • Counts towards cap above
  • An employer arrangement
  
Additional employer contributions: Voluntary contributions above compulsory requirements
  • See above
  • See above
  • An employer arrangement
  • Subject to work test
Salary sacrifice contributions: Contributions made by entering an arrangement with your employer where you agree to reduce your future gross salary and replace it with employer contributions to your super
  • See above
  • See above
  • Once you have confirmed that your employer offers salary sacrifice, you can complete the Contributions by payroll deduction (FSS010) (PDF 125kb) form and return it to your employer
  • Subject to work test
  • Not all employers offer salary sacrifice – ask your employer if it is available
Self-employed contributions: Contributions made by self employed persons for which a tax deduction is claimed
  • See above
 
  • See above
  • Subject to work test
  • Tax deductions can only be claimed if less than 10% of your assessable income and reportable fringe benefits are attributable to your employment as an employee and contributions are made before the 28th day after the end of the month in which you reach age 75

  

Non-concessional contributions
Personal contributions: Regular and/or one-off contributions made from after-tax income  
  • No tax is deducted from non-concessional contributions when allocated to your account
  • 46.5% additional tax on non-concessional contributions in excess of the cap

 
 

  • $450,000 over a 3-year period if less than age 65 years old
  • $150,000 if 65 years old or more.

 
Regular personal contributions
One-off personal contributions
  • Non-concessional contributions cannot be accepted if the Fund does not hold your TFN
  • Subject to work test

 

Spouse contributions: Contributions made from after tax income made into an account for your spouse
  • No tax is deducted from non-concessional contributions when allocated to your spouse’s account
  • 46.5% additional tax on non-concessional contributions for your spouse in excess of the cap
  • Counts towards cap above
Using the details of the receiving spouse, contribute:
  • If your spouse is between the age of 65 and 69, super funds can only accept contributions if your spouse has worked at least 40 hours in a period of not more than 30 consecutive days in the financial year to which the contributions are made. Once your spouse reaches age 70, you cannot make spouse contributions
Government co-contributions: Contributions by the Federal Government to match personal after-tax contributions
  • No tax is deducted from non-concessional contributions when allocated to your account

 

  • Excluded
  • See personal contributions

 

Contributions excluded from the non-concessional cap: Contributions made from certain personal injury payments. Contributions from the disposal of certain small business assets up to a $1.205 million life time limit
  • No tax is deducted from non-concessional contributions when allocated to your account
  • Excluded
  • Cannot be accepted if the Fund does not hold your TFN
  • Life time limit of $1.205 million applies to contributions in respect of the sale of small business assets (which qualify for the small business capital gains tax exemptions). Contributions below the limit are not non-concessional contributions. Contributions above the limit which are personal contributions are included in the non-concessional cap.