Making additional contributions to your super is one of several strategies you can use to help ensure your retirement years are comfortable.
There may also be tax incentives to adding a little extra into your super, so it’s important you understand how the tax rules work.
Understanding pre and post-tax contributions
There’s a few different types of additional contributions you can make to your super. Most of these contributions will be classed as either ‘pre-tax’ or ‘post-tax’.
There are limits to how much you can add to your super without tax implications - these are known as 'contribution caps'. Learn more on our contribution caps webpage.
Pre-tax/concessional contributions
These contributions are made prior to your income being taxed. They include Super Guarantee contributions made by your employer, and salary sacrifice contributions. These contributions are subject to a super contribution tax of 15%1 which we automatically pay to the ATO on your behalf.
The current concessional contribution cap is $30,000 per financial year. You may however be able to contribute more than this if you’re eligible to carry-forward unused contributions from previous financial years.
Post-tax/non-concessional contributions
These contributions are typically made with money that has already been taxed. They include personal after-tax contributions and spouse contributions. They are not subject to a contribution tax.
The current non-concessional contribution cap is $120,000 per financial year. You may however be able to contribute more than this if you’re eligible to use the ‘bring-forward rule'.
Understanding the different contribution types
Depending on your situation, there are different types of contributions you may choose to make to your super.
Our Retirement Income Simulator, can help you understand what your retirement income could look like, how long it might last and how adding even a little extra can have a significant impact over the long-term.
Super financial advice
As a Mercer Super member, you can access limited financial advice about your super to help you achieve your financial goals at no extra cost.
Read next:
Changing jobs and your super
If you’re changing jobs, you can take your Mercer Super account and benefits with you.
Nominating your superannuation beneficiary
By nominating a beneficiary you can let us know who you’d like your super to go if you pass away.
The ins and outs of additional personal super contributions
Your super is a long-term investment – additional contributions you make today can have a significant impact on your balance and retirement outcomes.
1 If the total of your combined income and concessional contributions is more than $250,000 per financial year, any concessional contributions over this threshold will be taxed at 30%. This extra 15% tax is often referred to as 'Division 293 Tax'. Find out more visiting the ATO’s website or by seeking your own tax advice.
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The material contained in this document is based on information received in good faith from sources within the market and on our understanding of legislation which we believe to be accurate. Neither Mercer nor any of its related parties accepts any responsibility for any inaccuracy.
This information is based on the interpretation of current tax laws which may change. You should obtain your own tax advice.
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