Bonus money for contributing to super
The Government may boost your super by up to $500 when you contribute extra money into your super. It’s known as the Government Co-contribution and is designed to help people earning up to $51,813 per annum grow their super savings.
Some rules do apply, but if you’re eligible the Australian Taxation office (ATO) will automatically pay the money into your super account when you do your tax return. If you’re ineligible, you can still contribute on behalf of a spouse or child who qualifies.
Additional tax breaks for topping up the super of your spouse
If your spouse earns under $37,000 this financial year, you can claim a tax offset of 18% on contributions up to $3,000 you make into their super account (up to a maximum of $540). Concessions apply on a sliding scale for incomes up to $40,000. You make the contribution then claim the tax offset through your tax return.
Up to $500 from the Low Income Super Tax Offset
If your income is under $37,000 the Government will refund the tax you paid on your before-tax contributions to super back into your super account. If you’re eligible, you can get a maximum payment of up to $500 into your super account. The ATO will assess your entitlement and pay the LISTO directly into your super account for you – you don’t need to apply.
Annual contribution limits
Since super attracts a concessional tax rate, there’s limits as to how much you can contribute each year. The current pre-tax (concessional) cap for everyone is $25,000 each financial year. The post-tax (non-concessional) cap is $100,000 each financial year (provided that your total super balance is under $1.6 million). Make the most of your contribution caps before the end of financial year – you can see how much you have left by logging into SuperOnline.
Tax deductions for putting money into super after-tax
New measures introduced last year mean that you can now contribute money to super after-tax and claim a tax deduction. These amounts count toward your pre-tax contribution caps. You can contribute easily via BPay – perfect for those last minute contributions to make the most of your annual caps! Just make sure you fill out our Notice of Intent to Claim a Tax Deduction Form so we can make sure your contribution is processed correctly.