Types of contributions you can make
To maximise your super benefit it's worth ensuring you are making the right type of contributions and taking advantage of the saving incentives super offers.
On 15 September 2016, the Government announced that the $500,000 lifetime post-tax contribution cap that was proposed in the May 2016 Federal Budget will not proceed. The annual post-tax contribution cap will continue, however the cap will reduce from the existing amount of $180,000 per year to $100,000 per year from 1 July 2017. Individuals under age 65 will continue to be able to bring forward three years’ worth of post-tax contributions ($300,000 over three years for those under age 65). Please note that these further proposals have not yet been legislated. We will update this information as the proposed reforms pass through the parliamentary process.
If you are under age 65, you and your employer can make regular or one-off contributions to your super at any time. If you are aged between 65 and 74 (inclusive) you and your employer can contribute to your super providing you are gainfully employed on at least a part-time basis in the financial year in which the contributions were made. Once you reach age 75 neither you nor your employer can make contributions to your super.
Please note there are limits on the amount of contributions you can make to your super. Read more about pre and post-tax contribution limits for either accumulation or defined benefit arrangements.
Pre-tax contributions, also known as concessional contributions, are any contributions made by your employer, or from your salary before your PAYG tax is deducted.
Pre-tax contributions include:
Pre-tax contributions within the pre-tax contribution limit are taxed at 15%* and are included in your taxable component when you withdraw your super.
Depending on your tax rate, making pre-tax contributions to your super taxed at 15%* (as opposed to receiving salary and paying tax at your Marginal Tax Rate, which is usually much higher) may actually result in little or no change to your take home pay.
For all of the benefits of contributing from your pre-tax salary, go to Choosing between pre and post tax contributions.
If you are employed by Telstra or Sensis and wish to make pre-tax contributions from your salary, you can do so through People Express. If you are not employed by Telstra or Sensis you will need to arrange pre-tax contributions from your salary through your employer.
* This tax is 30% for members with eligible income over $300,000.
Post-tax contributions, also known as non-concessional contributions, are any contributions made from your after-tax salary.
Post-tax contributions within the post-tax contribution limit are not taxed by your super fund and are included in your tax-free component when you withdraw your super.
By making post-tax contributions to your super you may be eligible for the Government co-contribution scheme (see below for details).
For all of the benefits of contributing from your post-tax salary, go to Choosing between pre and post-tax contributions.
To make post-tax contributions to your super you can:
- complete a contribution form. Download a Member and Spouse Contribution form (620kb) and return it to Telstra Super with your contribution.
- make a post-tax contribution through your financial institution with BPAY. Use the BPAY number generator to get your unique reference number for the contribution you wish to make.
You can also boost your super by transferring money you may have with other super funds into Telstra Super. Consolidating your super to Telstra Super means you will pay only one set of competitive fees to a strong performing fund, helping you maximise your balance, and you will have just one account, making it easier to keep track of your savings.
To transfer other super into your Telstra Super account download a Consolidate your super form and return it to Telstra Super. We will then arrange for your funds to be transferred into your Telstra Super account for you.
Multiple or lost super accounts? We can help
Each super account you have has its own set of fees which, over time, can erode your savings, reducing your final retirement nest egg. The good news is we can help with locating and consolidating your super accounts.
You can now consent to Telstra Super using your Tax File Number (TFN) to search Australian Tax Office (ATO) records for super accounts on your behalf, and contact you about the results we find. You can then advise us if you would like to consolidate some or all of the funds we locate for you, into your Telstra Super account.
To give Telstra Super consent to use your TFN to search ATO records and provide you with information to help you consolidate your super accounts, simply complete your details in the secure form.
If you're not sure if you've provided your TFN, check your TFN status using our handy online tool.
If Telstra Super doesn't have your TFN and you wish to provide it, download and complete the Tax File Number notification form or call us on 1300 033 166 to request a form. This form also includes a section where you can provide the consent outlined above.
Government co-contribution scheme
Each year, you get the opportunity to boost your super courtesy of the government. It’s called the government co-contribution scheme and here’s how it works.
If you earn less than $51,021 in the current financial year and make post-tax contributions to your super, you may be entitled to receive up to $500 in co-contribution payments from the government.
Eligible members earning $36,021 or less per year will receive a maximum entitlement of $500. For those on incomes over $36,021 pa the benefit works on a sliding scale, phasing out at an income of $51,021 pa.
Government co-contributions may be available provided you:
- made personal contributions to your super from your post-tax income
- earned a total income of less than $51,021 in the financial year (total income is assessable income plus reportable fringe benefits and reportable employer superannuation contributions)
- have lodged an income tax return for the financial year
- do not hold an eligible temporary resident visa at any time during the financial year
- are less than 71 years old at the end of the financial year the contribution was made
- earned at least 10% or more of your total income for the financial year from eligible employment
Get an estimate of your potential eligibility for the government co-contribution by using our Government co-contribution calculator.
To make post-tax contributions to your super:
- download a Member and Spouse Contribution form (620kb) and return it to Telstra Super with your contribution.
- make a post-tax contribution through your financial institution with BPAY. Use the BPAY number generator to determine the unique reference number for the contribution you wish to make.
Low income super contribution
The government may pay a superannuation contribution of up to $500 each financial year for individuals earning less than $37,000 p.a. This measure effectively refunds the contributions tax payable on low-income earner's concessional (pre-tax) contributions.
Spouse tax offset
If you’re at home or work part time, it’s likely your super savings may be reduced. This financial shortfall can impact the kind of lifestyle you and your spouse have in retirement. However, there is an easy way for you and your partner to build your retirement savings – and be financially rewarded for it!
The government offers a spouse tax offset of up to $540 on post-tax spouse contributions made to an eligible spouse's account.
Members who make a spouse contribution to their eligible spouse's account may be able to claim an 18% tax offset on the first $3,000 of contributions made each financial year to their spouse's account, provided their spouse is earning $10,800 or less. A partial offset is available if your partners income is over $10,800 but less than $13,800 per year.
Get an estimate of the possible spouse tax offset by using our Spouse tax offset calculator.
In addition, both spouses will need to ensure certain eligibility conditions are met when claiming the spouse tax offset:
- the contributing spouse has not claimed their contributions as a tax deduction
- both spouses were Australian residents when the contributions were made
- spouses were not living separately and apart on a permanent basis; and
- the sum of the assessable income and reportable fringe benefits of the receiving spouse was less than $13,800.
To make a spouse contribution to your eligible spouse's Telstra Super Personal Plus account download a Member and Spouse Contribution form (620kb)
If you are a Telstra employee and would like to make regular contributions to your eligible spouse's Telstra Super Personal Plus account by payroll deduction each pay period, you can do so via PeopleExpress.