By making extra contributions to your super now, you could have more money working for you every year until you retire. And thanks to the power of compound interest, that could make a big difference to your final retirement benefit.
What are after-tax contributions?
After-tax contributions are paid into your super from your take-home pay, after income tax has already been deducted.
How to make after-tax contributions
There are three ways to make after-tax contributions:
- Through your employer as a regular after-tax deduction from your pay
- As a direct debit from your bank account
- By contributing directly to Statewide Super whenever you want.
Get free money from the Government
By making after-tax contributions to your super, you could be eligible for the Government’s co-contribution scheme which could boost your super by up to $500, depending on your income level.
How much can you add to your super?
The limit on after-tax contributions for the 2015–16 financial year is $180,000.
If you’re under age 65, you can bring forward three year’s worth of contributions and contribute up to $540,000 (based on the current limit) in a financial year.
IMPORTANT: The government has passed a change to non-concessional contributions caps with the annual cap reduced to $100,000. The change is due to come into effect on 1 July 2017.
If you are considering making an after-tax contribution and you’re concerned about exceeding the lifetime cap we strongly recommend you obtain financial advice.
At Statewide, we have an experienced and professionally-qualified team available to provide you with financial advice* – simply phone 1300 65 18 65.
For more detailed information, download the How super works booklet.
Want to talk to someone about making contributions? Call our friendly Client Services team on 1300 65 18 65.
For personalised advice tailored to your needs, consider talking to a Financial Planner*.
The information provided is of a general nature. In providing this information we have not taken into account your objectives, financial situation or needs. Further, we recommend that professional financial advice should be sought from a qualified adviser with regard to your objectives, financial situation and needs before considering or acting on the appropriateness of the information given.