Alongside superannuation guarantee contributions made by your employer web site or your business, you can make a number of other contributions that help grow your superannuation.

There are two main types of super contributions: concessional and non-concessional.

Concessional Contributions

Concessional contributions are contributions made before tax, and can include:

  • Compulsory contributions which are made on behalf of you by your employer under the Superannuation Guarantee Scheme.
  • Salary sacrifice contributions which are voluntary contributions your employer pays out of your before-tax income. You’ll need to nominate your employer to do this.
  • Tax-deductible personal contributions which are voluntary contributions that you can make from after-tax income and then apply for a tax deduction.

Your age: All

Contributions cap: $25,000 a year. From the 2019-20 financial year onwards, you may be able to put more into superannuation at a concessional rate of tax by using catch-up concessional contributions from past years.

Non-concessional Contributions

Non-concessional contributions are contributions made into your super fund from after-tax funds and are not claimable as a tax deductible expense.

Before you make any contributions you need to be aware that there are limits to the amounts you can contribute on an annual basis. You should refer to the Australian Tax Office website for the latest limits or your Cashel Financial Advisor.

Please consider the following example:

Your age: Under 65

Contributions cap: $100,000 a year and up to three years of annual caps ($300,000) under bring-forward rules.

Please note the following:

If you exceed the super contributions cap, additional tax and penalties may apply.

If you have super assets of $1.6 million or more as at 30 June of the previous financial year, you can’t make additional after-tax contributions to your super, or you may be penalised.

  • Downsizer Contribution Option

    If you’re 65 or over at the time of making a contribution, a work test must be satisfied. Australians aged 65 and over, can make an after-tax ‘downsizer’ contribution to their super of up to $300,000 using the proceeds from the sale of their main residence, regardless of their work status, super balance, or contributions history.

  • Tax deductions on personal after-tax contributions

    Personal after-tax super contributions (non-concessional contributions) made since 1 July 2017 can be claimed as a tax deduction when you’re doing your tax return, lowering your taxable income. This results in roughly the same tax benefit as concessional contributions, which are only taxed at 15%.

  • Co-contributions from the government

    If you have lower income you will be eligible for a government contribution:

      • If your total income is equal to or less than $37,697 and you make personal after-tax contributions of $1,000 (and meet other eligibility criteria), you could receive the maximum co-contribution of $500.
      • If your total income is between $37,697 and $52,697, your maximum entitlement will reduce progressively as your income rises. These figures are indexed each year and may change in the future.
  • Low income super tax offset

    If you earn $37,000 or less a year, and you (or your employer) make concessional super contributions, the government may refund the tax you paid on those contributions back into your super account, up to a maximum of $500 per year.

  • Spouse contributions tax offset

    If your spouse (husband, wife, or de facto) is a low-to-middle-income earner or not working, you might be eligible for a tax offset if you make after-tax contributions into their super. To be entitled to this tax offset, eligibility rules apply, and the receiving spouse must be under the age of 65, or if they’re aged 65 to 69, they must meet work test requirements.

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