The tax breaks offered by super can be so good, the Government places limits on how much people can contribute to super each year. These are called ‘contributions caps’.

The rules are quite complex, and it’s important to get it right, so as your first point of call we recommend you reach out to your financial adviser, if you have one. Your adviser can review your financial situation and help you decide:

• whether a top-up is right for you at this time
• how much you can top up and how much you should top up
• How best to do it – e.g via salary sacrifice or via personal tax-deductible contributions
• Whether to claim a tax deduction on any personal after-tax contributions

You also have access to our team of smartCoaches who can provide you with advice about your contributions, investment mix, insurance, retirement adequacy, and transitioning to retirement within your smartMonday account.

You can contact the smartCoach team on:
P: 1300 262 241

To get you up to speed before you talk to your adviser or a smartCoach, here’s a summary of the rules that apply.

The first thing to get your head around (if you haven’t already) is the difference between concessional contributions and non-concessional contributions.

Concessional contributions : Capped at $30,000

These are called ‘concessional’ because they’re taxed at a special low rate – only 15%. (By comparison, the tax rate for annual income between $45,000 and $120,000 is more than double – 32.5%). The tax is paid on the way in to super.

Concessional contributions include:

• Employer Superannuation Guarantee (SG) contributions based on 11.5% of your earnings 
• Any voluntary (additional) employer contributions such as the payment of insurance costs, administration fees, or any other additional contributions made by your employer on your behalf
• Personal before-tax contributions (aka salary sacrifice contributions) 
• Personal after-tax contributions for which you claim a tax deduction. Please note: you’ll need to let us know you’re intending to claim a tax deduction on your personal contributions for the year by completing a Notice of intent to claim a tax deduction form (‘Deduction Notice’) available on our website and returning it to us before you lodge your income tax return and before 30 June of the following financial year.

The ‘carry-forward’ rules could increase your cap.

If the total amount you had in super at 30 June of the previous financial year is less than $500,000 you can ‘carry forward’ any unused concessional cap amounts from earlier years to make ‘catch up’ contributions. You can use caps from up to five previous years. For more information, see the ATO website at under ‘Concessional contributions and contributions caps’

Non-Concessional contributions : Capped at $120,000 

These are contributions made to your super fund from after-tax income. Because it’s after-tax money, it’s not taxed on the way into your super at all, and the cap is much higher than for concessional contributions.

The 'bring-forward' rules could increase your cap

People under the age of 75 may be able to make non-concessional contributions up to 3 times the annual non-concessional contributions cap in that financial year, known as the ‘bring-forward’ arrangement.

An eligible person who makes a non-concessional contribution in excess of the cap in a financial year automatically triggers this ‘bring forward’ provision. How much you can bring forward depends on your ‘Total Superannuation Balance’ (TSB). Your TSB is the value of all your super accounts on 30 June of the financial year immediately prior.

For a more information about non-concessional contributions, check out the ATO website .

Once you’ve reached out to your financial adviser or smartCoach and have decided to make a voluntary contribution, it’s easy to go ahead and make a contribution.

Personal contributions: the easiest way is BPAY®

Login to your account for your unique BPAY details to make Personal contributions through your bank or obtain these details on your annual statement, or by contacting us.

Please keep in mind your financial institution's processing time-frames if making payment via BPAY. We recommend you allow at least three business days for BPAY and 7-10 business days for postage.

Employer contributions

If you decide to make additional ‘Salary Sacrifice’ contributions, you will need to talk to your employer so that they can organise these payments from your ‘before-tax pay’. If you would like to make regular contributions from your ‘after-tax pay’ you can also talk to your employer regarding this.