After-tax contributions

What type of payments can you make?

• Regular voluntary contributions at an interval that works for you.

• A one-off payment to suit your financial situation.

What’s the benefit of making after-tax contributions?

Even the smallest extra payments can make a huge difference to your retirement. And adding twenty dollars here and there can be much easier than finding large amounts of cash.

The best part is, your after-tax contributions will keep earning you more money through compound returns – where you earn returns not only on your initial contribution but also on the returns it generates

Just so you know, if your yearly before-tax income is less than $60,400, you could be eligible for a government co-contribution on top of your voluntary contribution. Basically, for every dollar you contribute, the government could give you up to 50 cents, up to a maximum of $500. Once you’ve lodged your tax return, this money goes straight into your super account.

Speaking of tax, you might be able to claim a tax deduction on your personal contributions. That means more cash at tax time! More on this later.

Pretty cool, hey?

This all sounds good, but how do you make after-tax contributions?

Look, we want to make this as easy as possible. The SUPER simple way to contribute to your super is with BPAY® or by direct debit.

Get your details by logging into your super account, then head to your bank account to set up one-off payments or regular contributions.

Just so that you know, there's also a limit on how much you can add to your super through after-tax contributions each financial year, before additional tax applies. We’ve explained contribution caps in more detail here.

Self-employed?

These contributions might mean something a little different to you.

If you want to save for your retirement (and we recommend that you do, you’ll thank yourself later!) you can add to your super through after-tax contributions, and claim it back through your tax return. This will work out the same as before-tax contributions.

Why? Well, before-tax super contributions are taxed at 15%, so you may save tax depending on your situation.

How to claim a tax deduction on personal contributions

We’ve already mentioned that you could save on tax by making after-tax contributions. Here’s how: When you file your tax return with the ATO, you could claim a tax deduction for your personal contributions provided you have room in your concessional contributions cap.

There are other rules, things to consider and eligibility criteria you must meet to claim a tax deduction on super contributions, all the information can be found on the ATO website.

Here's what you need to do to claim a deduction:

Step 1: Before you complete your tax return, complete a Notice of Intent election via your online account .

Step 2: Wait for a letter of confirmation from us (you’ll need this for your tax return).

Step 3: Complete your tax return. You can do your tax return through MyGov or your accountant.

It works like this: The tax deduction reduces your taxable income, meaning you could pay less tax. The contributions you added will then be taxed at the 15% concessional contributions rate, which is generally less than most people’s income tax rate.

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All information is general and does not take account of your personal objectives, financial situation or needs. Before deciding whether this information is appropriate for you, please consider speaking with a Coach or a financial adviser.

This material has been prepared for informational purposes only. Any taxation, legal and other matters, including any interpretation of existing laws, referred to in this material is not intended to represent or be a substitute for specific taxation or legal advice and should not be relied on as such. You should obtain professional advice from a registered tax agent or legal practitioner. Existing laws may change from time to time.