Boosting your super can come with perks
Everyone dreams of a better life after work, but how do you get there? With some super know-how, you can contribute a little bit more from your after-tax income and reap the benefits.
Key learnings covered in this topic
- After-tax contributions types
- How these contribitions can boost your super
- Conditions, eligibility criteria and how we can help.
You might be hesitant to add more of your hard-earned dosh to super, especially in the middle of a cost-of-living crisis. But contributing more can come with perks like potential tax savings, or even a boost from the government. And the biggest perk of all—compound interest. The earlier you start boosting your balance, more time your super has to receive investment returns and grow. Basically, it’s like a snowball rolling down a hill that gets bigger the longer you leave it.
Super balance at age 67:
$415,463
Super balance at age 67:
$491,629
Super balance at age 67:
$588,624
Assumptions: Growth rate is 5.5%, $60,000 Salary, CPI indexed at 2.5%, Salary and contributions are indexed at 2.5%, Starting balance is $4k and Retirement balances are at age 67 but are in todays dollars.
The low down on after-tax contributions
After-tax contributions can be made from your take-home pay, your savings, a tax return, an annual bonus or an inheritance. Because this money has already been taxed, you won’t pay any additional tax when you put it into your super account.
There are a few different types of after-tax contributions including:
- Personal contributions from your take-home pay, a tax refund, or even an inheritance, are a great way to grow your super
- Spouse contributions can help build your partner’s balance and potentially save you tax
- Government co-contributions are a bonus from the government for low or middle-income workers.
You could be eligible for a co-contribution from the government when you make an after-tax contribution. Think of it as a reward for your extra efforts to grow and maximise your super balance.
How it works: chip in a little extra to your super this financial year and the government will make a co-contribution of up to $500, depending on your total annual income, and the amount you contribute.
Have a look at the government co-contribution you might receive if you were to make an after-tax contribution of $1,000 to your super in FY23/24. You won’t receive any co-contribution amounts if your income is equal to, or greater than, the higher threshold.
| Your total income | Estimated co-contribution from the government |
| $43,445 | $500 |
| $49,460 | $300 |
| $55,450 | $100 |
| $58,445 or over | $0 |
Once you’ve lodged your tax return, the government will work out how much you’re eligible for and then pay it straight to your super account – you don’t need to do anything else.
You can find out more info including; the eligibility criteria, important considerations including contribution limits and caps, and more at Government co-contributions.
How to make after-tax contributions
BPAY is the easiest way to make after-tax contributions. Here’s what to do in just 3 steps:
- Find the member or spouse BPAY biller code and reference number on the ‘Personal details’ page in MemberOnline (navigate to the ‘person icon’ at the right top-hand corner of your dashboard
- Make your contribution through your bank (app, online account, or by phone)
- That’s it! You can check the ‘Account activity’ section of MemberOnline where we’ll record the contribution recorded for you (after around 3 business days).
6 ways to make sure you boost your super without a hitch
Ensure you’re eligible
Check your eligibility depending on the type of contribution you’re looking to make.
Keep the contribution caps in mind to avoid paying more tax
After-tax super contributions are included in the non-concessional contributions cap, which is currently $110,000 per year.
Make sure we have your TFN
We’ll need your TFN before we can accept after-tax contributions. Check we’ve got it, or add it by going to the ‘Personal details’ page in MemberOnline.
Cut-off dates apply
Looking for that extra super boost from the government, or to reduce your tax bill this financial year? Be sure to make your contribution by 26 June 2024 to ensure it can be processed by 30 June 2024. Once we receive the contribution and the relevant documentation (if required), we’ll allocate it to your account.
Things to consider if you intend to claim a tax deduction
To claim a tax deduction on any personal or spouse super contributions, you must submit a Notice of intent to claim a deduction form before you complete your tax return or before 30 June of the financial year following the year you contributed (whichever occurs earlier). Doing this will change the contribution to a before-tax super contribution.
Seek advice if you need it
When it comes to your super contribution choices, you don’t have to fly solo – you can speak to a financial adviser at no extra cost to you.* Book a call-back today.
*Financial advice obtained over the phone, or through MemberOnline, is provided by Mercer Financial Advice (Australia) Pty Ltd (MFAAPL) ABN 76 153 168 293, Australian Financial Services Licence #411766.
Information correct as at 10 April 2024.