If you are concerned with how comfortable you would like to live beyond retirement, you may be thinking about your superannuation. Naturally, your employer will be contributing a portion of your pay toward your superannuation.

The amount that is contributed is often determined by how much you are paid, which means if you make a lot of money, you can rest easy knowing you will have a pretty comfortable return for your superannuation. Did you know that you can actually boost your superannuation return by making personal contributions? You can boost your superannuation or your spouse’s by making personal contributions. Any money you make after tax can be put toward your super.

These contributions:

  • are in addition to any compulsory super contributions your employer makes on your behalf.
  • do not include super contributions made through a salary-sacrifice arrangement.

Your personal contributions can only be made from your after tax pay and is considered non-concessional. Unless you claim a tax deduction on your contributions, they will count towards your non-concessional contributions.

You generally can’t claim a tax deduction on your personal super contributions if you are an employee. If you do want to claim a tax deduction for your personal contributions, you will need to lodge a notice of intent with your super fund. This notice will need to be acknowledged in writing by your superfund to be recognised.

Keep in mind, if you claim a deduction for your personal contributions, you may not be eligible for a super co-contribution.

What is a super Co-contribution?

The purpose of a super co-contribution is to assist individuals with their retirement savings.

If you’re a low- or middle-income earner and make personal (after-tax) contributions to your super fund, the government also makes a contribution (called a co-contribution) up to a maximum amount of $500.

Boost your superannuation – If you aren’t working

Is there any restrictions for those who aren’t working? Well, no. If you’re under 65, you can still make personal after-tax contributions to your super fund.

If you’re 65 years of age or over, you can only make personal after-tax super contributions if you:

  • aren’t yet 75 years of age and
  • have been gainfully employed for at least 40 hours over 30 consecutive days during the financial year.

Michael Rodriguez – Senior Accountant

Michael’s extensive experience in financial accounting, business advisory services and technical advice and support give our team and his clients a wealth of experience and knowledge that he loves to share. Learn more about Michael.

Need to know more about contributing towards your super?