How to increase your super contributions

Make extra contributions in so many super ways

Are you planning to spend more time with family or how about a long trip around Australia? The big question is, “How much will it all cost and how much will I need to save?”

The Association of Superannuation Funds of Australia (ASFA) regularly research just how much people need to live on in retirement.

Below are some ways you can do to contribute more towards your super account.

Voluntary Contributions

WHAT IS IT?

Voluntary (member) contributions can be made as after-tax (also known as non-concessional) contributions, or before-tax (also known as concessional) contributions.

HOW IT WORKS

The Government has established limits on the amount of both concessional and non-concessional super contributions that can be made during each financial year. It's important to be aware of these limits so that contributions aren't taxed at a higher rate.

GENERAL RULES APPLICABLE TO NON-CONCESSIONAL (AFTER-TAX PERSONAL) CONTRIBUTIONS ARE:
  • The amount of non-concessional contributions for persons under age 65 is capped at $180,000 (indexed) for the 2016/17 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 ($540,000 for 2016/17).
  • A contribution in excess of the non-concessional cap ($180,000 for 2016/17) 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 ($540,000 for 2016/17).
  • If you triggered the bring forward rule in 2013/14 or prior year when the maximum bring forward limit was $450,000 then your limit for the three years is based on that cap and you cannot take advantage of the increased contribution limit of $540,000 introduced in the 2014/15 financial year.
  • Persons aged 65 to 74 will not be able to bring forward future entitlements and will have a non-concessional limit of $180,000 for 2016/17 (indexed for future years) provided the work test is met in each financial year a non-concessional contribution is made.
  • Lower caps apply for concessional (before-tax) contributions. For more information, please refer to the Salary sacrifice page 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 our investment options, please click here.

HOW TO DO IT

You can make after-tax contributions as a payroll deduction 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 in our Let the government top up your super fact sheet.

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 can organise to make regular after-tax contributions to your super by contacting your employer payroll area. To do this, click on the button below to complete a payroll deductions eForm and give this to your employer.

Complete eForm

If you would like to make a once off Lump sum contribution to your super, please complete a lump sum contribution eForm below and return it to NGS Super.

Complete eForm

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

Be aware of the contribution caps that are in place to ensure you do not exceed the yearly maximum contribution amount. Check out our Opportunities and Limits for Super Contributions fact sheet for more information.

Government Co-contributions

WHAT IS IT?

Co-contributions are a helping hand from the government. If you put extra money into your super (after tax) and, if you are eligible, the government will make a co-contribution into your account.

For 2016/2017, if your total income is $36,021, or less per year, the government will put $0.50 into your super for every $1.00 you contribute, up to a maximum of $500 per year. If you earn less than $51,021, you’re still eligible, but at a lower rate. It’s a great way to boost your savings.

Please note that voluntary salary sacrifice contributions will be included in your total income when assessing your eligibility for the co-contribution.

IF YOU CAN TICK ALL OF THESE BOXES, YOU ARE ELIGIBLE
  • Your total income^ is less than $51,021 for the 2016/2017 financial year
  • 10% or more of total income comes from being an employee or self employed
  • You did not hold an eligible temporary resident visa during the financial year (unless you are a New Zealand citizen or it was a prescribed Visa)
  • You will lodge an income tax return for the financial year
  • You are less than 71 years old at the end of the financial year

For total annual incomes above $36,021, the maximum co-contribution will reduce by 3.33 cents for each $1.00 of income, and phase out completely at an income of $51,021.

Your extra contributions must be made from your after-tax salary. Salary sacrifice contributions are not eligible for the co-contribution.

^ assessable income plus reportable fringe benefits plus reportable superannuation contributions.

HOW TO DO IT
  • If you earn a salary, you can set up regular payments by filling out a Payroll Deductions Authority eForm which tells your employer how much money you want to put into your super after tax, or
  • You can use BPay to make a lump sum after-tax contribution. You can call 1300 133 177 or log into your secure Member Online account to find your NGS Super biller code and account reference number. Then you can make a payment through online banking.
  • You can also make a direct after-tax contribution via cheque by filling in a Lump sum contribution form.

Lump sum contribution form

Once you’ve made your after-tax contribution, you’ll receive your payment from the Government after you lodge your tax return for the financial year in which you made the contribution.

For more details, check out our Let the government top up your super fact sheet or you can call our friendly Customer Service Team on 1300 133 177.

Salary Sacrifice

WHAT IS IT?

The 9.5% super guarantee contribution is probably not enough to get by for a comfortable retirement. You can choose to save more by making salary sacrifice payments – putting more of your pre-tax salary into super.

HOW IT WORKS

Your employer puts more of your salary into your super rather than paying it to you as part of your take-home pay. This can boost your balance and also reduce your taxable income. Salary sacrifice contributions are taxed at just 15% (30% for incomes over $300,000), which may be much less than if that money had been taxed as part of your take-home pay.

It is important to check that your employer's 9.5% super guarantee contribution will not be impacted by any salary sacrifice. For most employers it does not, but it is best to check first.

HOW TO DO IT
  • Speak to your employer about making before-tax salary sacrifice payments into your super account. Most employers do this but not all - so it’s best to check first.
  • If that’s ok, fill out our Payroll deductions eform below with the amount that you want to put towards your super. Some companies may have their own form – which is ok, because all of the important information will be the same.
  • Then, return the form to the payroll department and ask them to organise the payments – it’s that easy!

Click on the link below to complete a Payroll deduction eForm.

Payroll deduction eForm

For more details, check out our Salary Sacrifice and Save fact sheet or you can call our friendly Customer Service Team on 1300 133 177.

CASE STUDY

John is age 45 and has an income of $65,000 before tax. This is too high for co-contribution, which cuts out at $51,021. However, he decides to salary sacrifice $10,000 to his NGS Super account (this will not exceed his concessional contribution limit of $30,000).

As a result he gains a net tax benefit, saving $2,100. This takes into account his Low-Income Tax Offset.

As with any financial decision, it's best to get professional financial advice about your situation. For more information call the NGS Super Customer Service Team on 1300 133 177.

Spouse Contributions

TOP UP LOW SUPER BALANCE

Did you know that if your spouse or partner has a low income (under $13,800) and a super account balance, you can add extra money to it? It can be a great boost to your spouse or partners savings and to your partnership.

IT WORKS BOTH WAYS

Your spouse can also make contributions to your super.

TAX OFFSET CONDITIONS - HERE'S AN EXAMPLE

Say your spouse works part time, earning less than $10,800 as assessable income and reportable fringe benefits. You could qualify for the tax offset maximum of $540p.a. (18% on a $3,000 spouse contribution), if you meet the following conditions:

  • the contributions were not deductible to the contributor
  • both the contributor and the spouse were Australian residents when the contributions were made
  • when making contributions, the contributor and the spouse were not living separately and apart on a permanent basis.

There is also a partial rebate available if your spouse earns between $10,800 and $13,800.

HOW TO DO IT

Click on the link below to complete a spouse contribution eForm.

Spouse contribution eForm

For more details, check out our Make Spouse Contributions Work for you fact sheet or you can call our friendly Customer Service Team on 1300 133 177.

Contribution Splitting

WHAT IS IT?

Now you can split personal and employer superannuation contributions with your husband or wife, or eligible partner if you are in a de facto domestic situation. Think of it as a split that's good for your future. It can help even out the imbalance in your accounts and may also improve your tax situation.

HOW IT WORKS

Decide how much you want to split. Your contributions can be transferred to an NGS Super spouse or partner account or to another complying superannuation fund.

The split can only occur after the end of each financial year, for contributions made in the previous financial year. Generally, you can split up to 85% of employer and salary sacrifice contributions (and any contributions that are tax deductible if you are self-employed). You can't split any voluntary after-tax contributions that you can't claim a deduction for, or any government co-contribution payments.

HOW TO DO IT

Please refer to the conditions on the split super contributions with your spouse fact sheet.

Click on the link below to complete the split super contributions with your spouse eForm.

Complete contribution splitting eForm

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