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.
Also known as concessional contributions, these are contributed 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% (or 30% if your income is $250,000 or higher) which we automatically pay to the ATO on your behalf.
The current concessional contribution cap is $27,500 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.
Also known as non-concessional contributions, these are typically contributed 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 $110,000 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.
Superannuation 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.
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.
*For non-severely disabled children eligible to receive to receive a reversionary pension, this must be paid out as a lump sum once they reach age 25.
Issued by Mercer Superannuation (Australia) Limited ABN 79 004 717 533, Australian Financial Services Licence #235906, the trustee of the Mercer Super Trust ABN 19 905 422 981 (‘Mercer Super’). Any advice is of a general nature only, and does not take into account the personal needs and circumstances of any particular individual. Prior to acting on any information, you need to take into account your own financial circumstances. Please consider the Product Disclosure Statement, Product Guide, Insurance Guide, Financial Services Guide and Target Market Determination (TMD) before making a decision about the product, or seek professional advice from a licensed, or appropriately authorised financial adviser if you are unsure of what action to take.Any advice contained in this document is of a general nature only, and does not take into account the objectives, financial situation or personal needs of any particular individual. Prior to acting on any information contained in this document, you need to consider the appropriateness of the advice taking into account your own objectives, financial situation and needs, consider the Product Disclosure Statement for any product you are considering, and seek professional advice from a licensed, or appropriately authorised financial adviser if you are unsure of what action to take 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 and government press releases at the date of publication which we believe to be reliable and accurate. Neither Mercer nor any of its related parties accepts any responsibility for any inaccuracy. Copyright 2023 Mercer Superannuation (Australia) Limited. All rights reserved.
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 and government press releases at the date of publication which we believe to be reliable and accurate. Neither Mercer nor any of its related parties accepts any responsibility for any inaccuracy.
IMPORTANT: Please note that any information in this material regarding legal, accounting or tax outcomes does not constitute legal advice or an accounting or tax opinion and prior to relying and acting on this information it is important that you seek independent advice from a qualified lawyer or accountant regarding this information.