Voluntary contributions

Voluntary Contributions

What is it?

Voluntary (member) contributions are also known as after-tax contributions.

How it works?

The Commonwealth Government has established limits on the amount of both employer and personal contributions that can be made during each financial year which receive concessional tax treatment before a higher taxation rate will then apply.

General rules applicable to non-concessional (after-tax personal) contributions

• The amount of non-concessional contributions for persons under age 65 is capped at $150,000 (indexed) per financial year.
• A person may bring forward future entitlements to two years worth of non-concessional contributions making the maximum three times the non-concessional contribution cap in any one financial year ($450,000 for 2009/10).
• A contribution in excess of the non-concessional cap ($150,000 for 2009/10) will automatically trigger the "bring forward" and will not be subject to further indexation in the next two years.
• Contributions in next two financial years will be limited to the difference between the actual contribution made and three times the non-concessional cap ($450,000 for 2009/10).
• Persons aged 65 to 74 will not be able to bring forward future entitlements and will have a non-concessional cap of $150,000 for 2008/09 (indexed for future years) provided the work test is met in each financial year a non-concessional contribution is made.
• Non-concessional contributions in excess of the non-concessional cap will be subject to tax at the rate of 46.5%.
• Lower caps apply for concessional (before-tax) contributions. You can only claim a deduction for your after-tax personal superannuation contributions if you are self-employed. However, employees may be able to arrange for concessional (before-tax) contributions to be made by salary sacrifice. For more information, please refer to Salary Sacrifice and our Extra Contributions calculator on our website.

You may also wish to consider your investment choice to ensure that your superannuation investment reflects your particular needs. For further information on the 11 investment options, please click here.

How to do it?

You can make voluntary contributions as a payroll deducation or as a lump sum.

Up to 100% of your after-tax salary can be contributed. This may be arranged as a regular deduction through your employer payroll area. By topping up from your after-tax income you may also be entitled to receive benefit from the Government's superannuation co-contribution. Further information on this benefit can be found on our website (refer to the Easy Money fact sheet) and by using our Extra Contributions calculator.

You can also make a personal lump sum contribution at any time up to age 65 years. If you are aged between 65 and 74 years then you will need to meet an annual work test (i.e. a minimum 40 hours worked during a 30-day consecutive period in the financial year in which the contribution is made). Simply send a cheque, made payable to NGS Super and complete a Lump Sum Contribution Form to deposit funds into your member account.

You may also make lump sum contributions using BPay which can be accessed by logging onto Member Online.