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
- insurance premiums paid directly by your employer
- 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.
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
|74 and under||75 and over|
|Mandated employer contributions||
Superannuation Guarantee (SG) and contributions made under an award or industrial agreement
|Voluntary employer contributions||All employer contributions other than mandated employer contributions including salary||Yes*||No|
|Personal pre-tax (concessional) contributions||Contributions made on voluntary basis which you intend to claim a tax deduction for||Yes
If you are 67 to 74* you must meet the work test or work test exemption
|Personal post-tax (non-concessional) contributions||Contributions made on voluntary basis for which you will not claim a tax deduction, including most transfers from an overseas fund||Yes*||No|
|Spouse contributions||Eligible spouse contributions||Yes*||No|
|Government co-contributions||Co-contribution scheme||Yes
If you are 70 or younger at the end of the financial year
||Post-tax contribution from the sale of the primary home
If you are 55 or over
||Excluding Death benefits
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.
Need help making contributions?
At TelstraSuper we’re here to help you build a secure financial future. If you’d like to discuss your options for making contributions or if you have any other queries relating to your account contact us on 1300 033 166 or fill in our online contact form.Online contact form