After tax contribution
What’s an after-tax contribution
An after-tax contribution (non-concessional contribution) is simply a voluntary payment made by you, from your take-home pay and into your super. It’s called an after-tax contribution because in most cases, it comes from the income you’ve already paid tax on.
By adding a bit to your super now, can boost your balance for retirement through compound interest and investment growth. That means more money for you when it’s time to retire.
How does it work?
By looking at the best payment options for your circumstances, it’s easy to make after-tax contributions.
You can choose to:
- Transfer any amount directly into your Statewide Super account
- Arrange for Statewide Super to direct debit from your bank account
- Ask your employer to make a regular after-tax deduction from your wage.
You can even use a combination of methods.
Get a bit extra from the Government too
If you’re on a lower income, and you make an after-tax contribution to your super, you may be eligible to receive up to $500 each year from the Government through its automatic co-contribution scheme. That’s a possible $500 just for topping up your super.
How much can I add to my super?
There are caps on how much you can contribute without paying extra tax. In the 2020-21 financial year, the after-tax contribution cap is $100,000.
If you’re under 65 years of age you can choose to ‘bring-forward’ two years of contributions. It means that if your total after-tax contributions over three years is less than $300,000 you won’t be subject to excess non-concessional contributions tax, even if you go over the $100,000 cap one year.
You can make after-tax contributions if your total superannuation balance is less than $1.6 million and you’re:
- under age 67, or
- between age 67 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 your total superannuation balance is greater than or equal to $1.6 million (for the 2019-20 financial year) at the end of 30 June 2020 and you make an after tax contribution in the 2020-21 financial year, you will have excess after-tax contributions.
ASIC MoneySmart contributions calculator can help you figure out the best way to use after-tax contributions as a way of growing your super.
Thinking about downsizing your home?
Did you know that you may now be able to downsize your family home and contribute the proceeds to your super? Learn more here.
If you’re thinking of making an after-tax contribution but are concerned you’ll go over the cap, we recommend having a chat to one of Statewide Super’s specialist Member Solutions Advisors on 1300 65 18 65 or talking to a financial planner.