The ins and outs of additional personal super contributions

Although super is considered to be a long-term investment, we know the reality is that many people don’t really start to think about their super until they get closer to retirement, which can lead to having a lower than ideal balance when you finish working.

By making additional personal contributions to your super, you can take a key step to helping ensure a comfortable retirement.

Types of additional personal contributions

Although your employer makes contributions on your behalf, you’re also able to make additional personal contributions to help boost your super balance. Contributions big or small, one-off, or consistent, can all play a significant role in helping to bolster your balance.

Through the power of investment returns and compounding interest, additional returns can be generated on the returns you’ve already earned, helping to exponentially grow your super balance over the years.

Contributions are typically classed as either ‘non-concessional’ or ‘concessional’, both of which have rules, known as contribution caps, that outline how much you can contribute within a financial year. For further information on the contribution caps, see our dedicated webpage.
 

Non-concessional contributions

Non-concessional contributions are typically made with your after-tax money, such as funds in your savings account and are not subject to any tax when added to your super account.

You can generally make up to $120,000 of contributions each financial year (or up to $360,000 by using the ‘bring-forward’ rule).

If you take advantage of these rules, you're able to invest a significant amount of additional funds, allowing you to considerably grow your balance over the years.

Non-concessional contributions and the returns they generate can generally be made without tax implications, as once you reach age 60, any withdrawals from your super account are tax-free.
 

Concessional contributions

Concessional contributions are added to your super before-tax, such as employer and salary sacrifice contributions. Additionally, any after-tax contributions which you have claimed a tax-deduction on are considered to be a concessional contribution.

You are generally able to make up to $30,000 of concessional contributions each financial year, without any tax implications. However, you may be able to make over this amount if you’re eligible to use the ‘carry forward rule’.
 

Contributing to your super and getting a tax deduction

Another method of contributing to your super that has the added benefit of allowing you to claim a tax deduction, is the converting of non-concessional contributions to concessional contributions (if you’re eligible). These contributions will then count towards your concessional contribution cap.

You can do this by first making non-concessional contributions to your super and then submitting a ‘notice of intent to claim’ form to us. We will then convert the requested non-concessional contributions to concessional contribution.

As concessional contributions are taxed at a low-rate of 15%¹ you can then claim these contributions as a tax deduction when you file your tax return.
 

The difference your contributions can make

Our Retirement Income Simulator, can help you understand what your retirement income could look like, how long it might last and how adding even a little extra can have a significant impact over the long-term.
 

Getting started

Although these are some of the additional contributions you can make to your super, there are others. For further information on the other types of contributions you can make see our dedicated webpage.

Before making additional contributions to your super you may wish to seek financial advice. Our Helpline Advice team can provide limited financial advice about your super fund at no additional cost. You can make an appointment with this team by calling our Helpline on 1800 682 525, 8am-7pm (AEST/AEDT).

Ready to boost your super?

The more you do now, the better off you could be in retirement. Find your BPAY details in Member Online and get started.