Limits on pre-tax (concessional) contributions

The pre-tax contributions cap for the 2023/24 financial year is:

• $27,500 for all ages

If you’ve supplied your super fund with your Tax File Number (TFN), any pre-tax contributions will be taxed as follows:

• up to the concessional contributions cap – 15%
• over the concessional contributions cap – taxed at your marginal tax rate. Tax can be paid ‘out of your pocket’ to the ATO or you may instruct TelstraSuper to release up to 85% of your excess concessional contributions from your account to meet the income tax liability.

For more information visit the ATO website.

Contributions included in the pre-tax (concessional) cap

• employer Superannuation Guarantee (SG) contributions
• salary sacrifice contributions
• pre-tax contributions to defined benefit arrangements
• pre-tax contributions made to your account and split to your spouse under the Contribution Splitting rules
• additional employer contributions which cover insurance premiums
• all your pre-tax contributions to all your super funds.

If you don’t supply your TFN to your super fund, all pre-tax contributions will be taxed at the top marginal rate (plus Medicare levy). Caps include contributions made to TelstraSuper and any other super funds you may be contributing to.

Catch-up pre-tax (concessional) contributions 

Eligible members who contribute less than the concessional contributions cap will be able to ‘carry-forward’ any unused amounts for up to five years if their total super balance (including all balances if they have more than one super account) is less than $500,000 at the end of the previous financial year. This may allow you to make additional pre-tax contributions that would have otherwise exceeded the cap for the relevant financial year.

Find out more about catch-up contributions

Limits on post-tax (non-concessional) contributions

The post-tax contributions cap for the current financial year is $110,000 p.a. per person provided that your total super balance is under $1.9 million as at 30 June 2023. If your balance as at 30 June 2023 is $1.9 million or over you cannot make any post-tax contributions into your super account. 

If you’ve supplied TelstraSuper with your TFN, any post-tax contributions will be taxed as follows:

• up to the non-concessional contribution limit – no tax
• over the limits – excess amount taxed at the highest marginal tax rate plus Medicare levy. 

Post-tax contributions are not accepted if you haven’t supplied your TFN to your super fund.

Contributions included in the post-tax (non-concessional) cap

• post-tax contributions you make to your super
• post-tax contributions your spouse makes to your account
• pre-tax contributions in excess of the concessional contributions cap
• most transfers from overseas funds.

If you have made a COVID-19 early release re-contribution, it will not count towards your post-tax contribution cap.

If you’re aged under 75 years on 1 July of the financial year, you’ll be able to bring forward the next two years of post-tax contributions and make a lump sum contribution of up to $330,000 in one financial year provided that your total balance is less than $1.68 million on 30 June of previous financial year. For instance, if you make a $330,000 contribution during the 2023/2024 financial year, you won't be allowed to make any further post-tax contributions until the 2026/2027 financial year. The bring forward rule reduces to 2 years for balances between $1.68 and $1.79 million and reduces to 1 year for balances between $1.79 and $1.9 million. 

Caps include any contributions made to TelstraSuper and any other super funds you may be contributing to. The bring-forward rule is triggered when the post-tax contribution limit is exceeded in a financial year.

When you can make super contributions

If you’re under 75 years of age, we can accept all types of contributions, except downsizer contributions, which can only be made if you’re aged 55 years or over.

In addition, if you’re aged 67 or over, you’ll need to meet the work test to claim personal (concessional) super contributions. To satisfy the work test you must have worked for at least 40 hours within 30 consecutive days in the financial year in which the contribution was made.

You can transfer a benefit from another super fund into TelstraSuper regardless of your age unless you have received it as a death benefit. Death benefits cannot be paid into an accumulation account or mixed with your own super interest and must either be paid as a death benefit income stream or cashed out as a lump sum payment.

If you’re 75 or over

We can continue to accept mandated contributions and eligible downsizer contributions once you reach 75 years. We can also accept the following types of contributions in the 28 days after the end of the month in which you turn 75 years:

• Voluntary employer contributions, such as salary sacrifice contributions
• Other member contributions, such as personal and spouse contributions

Other eligibility criteria may apply
* Including the 28 days from the end of the month in which the member turns age 75.

Pension phase - transfer balance cap

A transfer balance cap of $1.9 million applies to how much you can transfer from super into a tax-free income stream from 1 July 2023. If you have commenced a retirement income stream before 1 July 2023, your personal transfer balance cap will be between $1.7 and $1.9 million, depending on the circumstances (check your personal transfer balance cap with the ATO). This cap includes balances from all income stream accounts (including defined benefit income streams e.g. CSS pension) held in an individuals name.

If you exceed your transfer balance cap you will need to pay excess transfer balance tax and either transfer the excess back into your accumulation account (unless it’s a death benefit income stream) or withdraw it from your income stream as commutation and extra pension payment.

If your taxable income is higher than $250,000 a year, you’ll pay 30% tax on your pre-tax contributions.

If your income is less than $250,000 a year but when you add in pre-tax contributions it’s above $250,000, the 30% tax rate will apply to that part of your pre-tax contributions that are over $250,000. For example, if your income is $230,000 and your pre-tax contributions are $25,000, the 30% tax rate only applies on the $5,000.