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Category » Contributing to Super

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• Q1 How much can I contribute to super?

  This depends on your age and whether the contributions to your super fund attract tax concessions or not. Concessional contributions An employer, or in certain circumstances the contributor, can claim this type of contribution as a tax deduction. You pay 15 per cent tax on these contributions t ... Read more

• Q2 Is there a limit on the amount that can be salary sacrificed to superannuation?

  Some employers are unenthusiastic about packaging salaries for employees covered by an award if it would result in income payments dropping below the award rate (it may be possible to negotiate a Workplace Agreement or a Certified Agreement that will allow more flexibility in this regard). The G ... Read more

• Q3 How can I contribute to my super account?

  A range of options are available to make contributions to your superannuation account. You can draw a cheque and send it to your local office for processing. You also have the option of visiting your local office to make payments from your cheque, savings, or credit accounts, through the use of ... Read more

• Q4 I’m not working, but can I contribute to super anyway?

  The simple answer is yes, provided you are under 65. However, you can contribute to super after reaching 65, if you are under 75 and meet the work test. The test involves you working at least 40 hours in 30 consecutive days during a financial year. The test must be undertaken before any contrib ... Read more

• Q5 Should I borrow to put money into super?

  Before you borrow any money from anyone you should carefully consider how much interest you will pay, whether you can afford to pay it and whether it is worth borrowing that amount of money at that cost for the expected return. Borrowing money for investment is only worthwhile if the bottom lin ... Read more

• Q6 How much of my own after-tax money can I put into super?

  The maximum non-concessional (after-tax contribution limit) is $150,000 a year, or $450,000 averaged over three years on a ‘bring-forward’ basis. People aged 65 or over are able to make after-tax contributions of up to $150,000 each year as long as they satisfy the work test. Non-co ... Read more

• Q7 How do I know if my employer is paying the correct superannuation contributions?

  Super funds are obliged to send every member an annual statement of their super account. Some funds also send a half-yearly statement. This statement records your account balance at 1 July, employer and your own contributions, investment earnings, fees and a year-end balance. Employers must sta ... Read more

• Q8 How much super should my employer pay?

  Generally, if you earn $450 (before tax) or more in a calendar month and you are aged over 18 and under 70, the law requires your employer to pay superannuation of 9 per cent of your ordinary-time earnings into a super fund on your behalf. Your ordinary-time earnings are a component of your gro ... Read more

• Q9 Should young people be contributing to superannuation?

  A member who makes his/her own contributions to super early in their working life will build up their superannuation much more easily than someone who leaves it until they are approaching retirement. This is because they benefit from the effect of compound interest over a longer term. Even modes ... Read more

• Q10 Should I repay debt on our family home before considering contributing to superannuation?

  This is one of many questions where individual circumstances may make a big difference to the most appropriate course of action. However, most people cannot claim a tax deduction for the interest they pay on the mortgage for their family home, which is a significant cost to their budget that the ... Read more