You might be wondering how to increase your superannuation. Your employer is making mandatory SG contributions on your behalf, but how can you make it grow faster?
There are two types of superannuation contributions:
- Concessional contributions include the employer SG and contributions made from your pre-tax income. Your pre-tax income may include salary sacrifice and any other contributions claimed as a tax deduction.
- Non-concessional contributions (voluntary after-tax contribution) are made from your post-tax income or savings, which does not attract the 15% contribution tax, as you have already paid tax on your income.
A voluntary after-tax contribution to your super is a simple and effective way of growing your super. And as long as you remain under the contributions cap (limits), you won’t pay any tax on the contribution, because you’ve already paid income tax.
The concessional contributions cap for the 2016 – 2017 financial year is:
- $30,000 for those under age 49 on the last day of the previous financial year
- $35,000 for those age 49 and over on the last day of the previous financial year.
There’s more good news. If your total income is less than $51,021 in the 2016/17 financial year and you make a voluntary after-tax contribution (you may be entitled to a government co-contribution payment).
We’re here to help. So let’s talk.
If you have any questions, please don’t hesitate to call our Service Centre on 1300 360 988, or email us.