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?
To grow your super you might like to consider making after-tax contributions. These are contributions you make from your take-home pay, after you have paid tax. You can contribute regularly or make oneoff contributions. You can make after-tax contributions if your total superannuation balance is less than $1.6million and you’re:
- under age 65, or
- between age 65 and 75 and have been gainfully employed for at least 40 hours in 30 consecutive days during the financial year in which you want to make the contribution.
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 Super, we have an experienced and professionally-qualified team available to provide you with financial advice. Book an appointment with a Financial Planner.
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. It does not consider your specific objectives, financial situation or needs nor is it intended to be financial product advice. You should consider the appropriateness of this general advice with regard to your personal circumstances, obtain independent financial advice and consider the applicable Product Disclosure Statement before making an investment decision.