How can I contribute to Super?

Published: 8-Apr-2024

Author: Ben Payne

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There are several ways to contribute to your superannuation fund in Australia and build a nest egg for retirement.

  • Superannuation Guarantee: This is the foundation of most people's super savings given employers must contribute a minimum percentage (11%) of employee salaries into their chosen super fund.
  • Salary sacrifice: You can arrange with your employer to divert some of your pre-tax salary into super (in addition to super guarantee) which reduces taxable income and boosts your super balance.
  • Personal contributions: You can also contribute your own money into super as follows:
    • Personal concessional contributions: These are made from pre-tax income and can therefore reduce your taxable income and attract personal tax benefits.
    • Non-concessional (after-tax) contributions: These contributions are made from your after-tax savings once income tax is deducted. This can be a good option if you have maximised concessional contributions and want to save more for retirement.

Things to consider:

  • There is a $27,500 annual limit of for concessional contributions which includes employer contributions, salary sacrifice and personal concessional contributions
  • There is a $110,000 annual limit for non-concessional contributions (or up to $330,000 if using bring forward provisions)
  • You must be under 75 and have a total super balance below $1.9 million to make non-concessional contributions
  • You must meet a work test (employed 40 hours in any 30 day period) before making salary sacrifice or personal concessional contributions if over age 67
  • You will not have access to funds contributed to super before meeting a condition of release such as reaching age 65 or retirement after age 60. Super contributions

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