Contribute to super
Adding a little extra to your super today can be a great way to boost your super savings for retirement.
What are super contributions?
Super contributions are payments made into your super account to help grow your retirement savings.
For many people, the majority of your super will come from employer contributions made on your behalf.
Employers are generally required to pay the Superannuation Guarantee (SG) of at least 12% of each eligible employee's ‘qualifying earnings’▷ at the same time as their regular salary or wages into their super fund.
You can also choose to add personal contributions to super, which can help boost your retirement savings and, in some cases, provide tax benefits.
There are two main ways you can contribute extra to your super:
1. Before tax contributions (concessional contributions) - made from your income before tax, such as salary sacrifice contributions or personal contributions you claim as a tax deduction.
2. After tax contributions (non-concessional contributions) – made from money you've already paid tax on, such as your take home pay or savings.
Other contribution types you may come across include:
- Downsizer contributions – contributions from the proceeds of selling an eligible home.
- First Home Super Saver (FHSS) contributions – eligible voluntary contributions that may later be withdrawn to help buy a first home.
Before tax contributions
Before tax contributions are made from your income before tax is taken out. They include your employer's SG contributions, any salary sacrificed contributions, and personal contributions you claim as a tax deduction.
Why do it?
- Pay less tax: These contributions are usually taxed at 15%, which is generally lower than your marginal taxe rate. However, if you earn more than $250,000 a year, you may need to pay an additional 15% tax on your super contributions.
- Reduce your taxable income: By salary sacrificing from your before tax income, you could lower your taxable income and potentially pay less tax.
- Benefit from government incentives: You may be eligible for a Low Income Super Tax Offset (LISTO) to help boost your super savings.
- Grow your super: The earlier you start contributing extra to your super, the more you may benefit from compound interest. This means you earn interest on your interest, and over time, this can help your savings grow faster.
How to set it up
Check with your HR or payroll team to see if salary sacrificing is available. If it is, ask your employer to set it up for you.†
To learn more about before tax contributions:
There are limits (contributions caps) set by the government on the total amount of before tax contributions you can make each year. If you go over the caps, you may need to pay extra tax.~
.png)
Salary sacrifice case study
This example compares the impact of making salary sacrifice contributions versus not making them.*
Damo and Pete work together, earn the same pay and get the standard SG amount. They are the same age and have the same insurance in super.
From age 25, Damo makes a salary sacrifice contribution of $50 a fortnight and Pete doesn’t.
Both are invested in the Balanced Growth investment option. For the cost of a takeaway meal for two each fortnight, at retirement (age 67), Damo will end up with $191,018 more than Pete>.
This could cover the cost of a new car, an overseas trip or necessary home maintenance at retirement.
How does salary sacrifice work?
Small steps now can make a big difference later. See how salary sacrificing could help boost your retirement savings.
Watch the video to learn more about salary sacrifice.
Put money in your super and claim a tax deduction
You may be able to claim a tax deduction for personal super contributions that you make from your after tax income.
After tax contributions
After tax contributions are made from money you've already paid tax on, such as your take-home pay, savings, an inheritance or proceeds from selling an asset.
Why do it?
- Boost your super without paying extra tax: Because these contributions come from income that’s already been taxed, you generally won’t pay additional tax when they’re added to your super (unless you exceed the annual cap).
- Benefit from government incentives: You may be eligible for a government co-contribution to help boost your super savings.
- Support your spouse: Help your partner grow their retirement savings and potentially claim a tax offset by contributing to their super.
- Claim a tax deduction: If you’ve made after tax contributions to your super, you may be eligible to claim a tax deduction for these contributions.
- Grow your super: Adding extra contributions can help increase your balance over time, giving your super more opportunity to grow.
Learn more about after tax contributions:
There are limits (contributions caps) set by the government on the total amount of before tax contributions you can make each year. If you go over the caps, you may need to pay extra tax.~
Personal contribution case study
This example uses the bring forward arrangement.*
Jono is 59 years old and has a super balance of $250,000. He recently inherited $200,000.
The yearly after tax contribution cap is $130,000 but if he uses the bring forward arrangement, he can put all this money into super in one go and make an after tax personal contribution of $200,000. This will increase Jono’s super balance to $450,000, which will help increase the amount of money he’ll have at retirement.
.png)
Super contribution caps
The government sets limits (contribution caps) on how much money you can add to your super each year. While adding extra to your super is a great way to grow your balance, if you go over these limits, you may pay extra tax.
How to make after tax contributions
You can make one off or regular after tax contributions in the following ways†:
1. BPAY®
Use BPAY® to transfer set amounts directly from your bank, building society or credit union account into your BUSSQ account.
You can find your BPAY® details in your online account or by calling us.
2. Payroll deduction
Your employer may be able to arrange additional super contributions directly from your pay.
Speak with your employer to to see if this option is available. If it is, you can organise regular deductions from your pay.
3. Direct Debit
You can choose to have a set amount regularly deducted from your bank account and paid into your BUSSQ account.
To get started, simply complete and return a Direct Debit Request form.
How do voluntary contributions work?
Making extra voluntary contributions to your super account could have a big impact on your super balance when you come to retire.
Watch the video to learn more.
Get more from your super
There are plenty of things you can do now to make a big difference later.
