Investing extra money into your super is one way you can help set yourself up for a comfortable retirement. One of the great benefits of super is that earnings are taxed at a low rate
. So, unlike other types of investments, any earnings you make on your super will be taxed at a maximum of 15% instead of your marginal tax rate. For example, if you invest your money in the share market, your earnings could be taxed at a rate of up to 47% (including levies), depending on your income. In comparison, any investment earnings in super are only taxed at a maximum of 15% (catch being, you can’t access this until you reach preservation age
There are two main ways to make extra contributions and top up your super.
Super tip: If you haven't used all of your before-tax contributions cap by the end of the financial year, you can boost your super with a personal (after-tax) contribution and claim it as a tax deduction. This will convert it into a before-tax contribution and may reduce the amount of tax you need to pay, depending on your personal situation. If you do this, please send us a completed Notice of intent to claim or vary a deduction for personal super contributions (PDF) form when making your payment.
Helpful information before you get started
Things to consider
Before topping up your super you should consider what’s best for you. The MoneySmart Super Contribution Optimiser helps you work out what type of contribution will give your super the biggest boost.
Contributions may be subject to limits, or contribution caps, and criteria set by the government.
- If you're aged over 67 to 74, you must work at least 40 hours in any 30 consecutive day period during the current financial year to make after-tax contributions to your super. This is called the 'work test'
(PDF). There's an exemption for the work test if you have less than $300,000 in super. This means you can also make these contributions for up to 12 months after the financial year when you last met the work test, provided that we receive your
contributions before 28 days after the end of the month in which you turned 75. You also must not have used this exemption in a previous financial year.
If you're unsure, don't forget we're here to help. You can give us a call on 13 64 63 or email firstname.lastname@example.org. If your needs are more complex, we can put you in touch with a financial adviser from Mine Super Financial Advice.
1 Calculation made using Super Guru calculator and based on a 35-year-old person putting an additional $10 each week into their super account as an after-tax contribution, assuming 4.80% pa growth over 32 years (and retiring at age 67). Calculation as at 28 March 2022.
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