Don't miss out on super opportunities
May 31, 2017
It's not long now until some of the most significant changes to super come into effect on 1 July 2017.
If you haven't had a chance to catch up on the changes that may affect savings and super, you can read more here.
But did you realise that at the end of this month, the super rules will be changing as a result of last year's Federal Budget? The legislation for the new super rules was passed in November, and comes into effect on 1 July 2017.
That means you only have between now and 1 July 2017 to add to your super under the current limits, which are higher. So if you're in a position to put in a little extra, you may enjoy tax savings now and a more comfortable retirement in the future.
Super cap changes
| Contribution | Age at 1 July | Current Cap | Cap from 1 July 2017 |
| Pre-tax | Under 50 | $30,000 p.a. | $25,000 p.a. |
| Pre-tax | 50 or over | $35,000 p.a. | $25,000 p.a. |
| Post-tax | Under age 65 | $180,000 p.a./ Up to $540,000 under the bring-forward rules |
$100,000 p.a./ Up to $300,000 under the bring-forward rules |
| Post-tax | Age 65-74 | $180,000 p.a Not eligible to access the bring forward rules |
$100,000 p.a. Not eligible to access the bring forward rules |
Members under age 65 at any time during the financial year will continue to be able to bring forward up to two future years of post-tax (non-concessional) contributions.
This means if you’re under 65 at any time during the financial year, you have the opportunity to make post-tax contributions to your super until 1 July 2017 up to the current annual cap of $180,000, or $540,000 using the bring-forward rule.
If you were aged 65 at the start of the financial year and are still working, you have the opportunity to contribute up to $180,000 this financial year prior to the limit reducing to $100,000 on 1 July 2017.
Post-tax contributions can be made by BPay or by filling in this form.
A few things to think about
- You can see how you’re tracking towards your pre-tax contributions cap in SuperOnline. Any employer-paid insurance premiums also count towards your pre-tax contributions cap and these can be viewed in SuperOnline as well.
- You can also see any post-tax contributions you have made in the transactions area of SuperOnline.
- If you’re aged 65 to 74 and want to contribute to your super, you’re required to satisfy the work test. The work test states you must be gainfully employed for at least 40 hours in no more than 30 consecutive days within the financial year.
- If you have contributed above $180,000 in either of the two previous financial years and triggered the bring-forward rule, your limits may vary to the above and we encourage you to seek financial advice.
- The limits apply to contributions made to other funds as well as TelstraSuper, so if you are making contributions elsewhere, you need to include those in your cap.
We’re here to help with contributions
At TelstraSuper, we’re here to help you build a secure financial future. If you’d like to discuss maximising your contributions, call us on 1300 033 166 or fill in our online contact form. There’s no additional charge for this type of advice, as this is included in your TelstraSuper membership.