Making extra super contributions from your after-tax pay (your take home salary) can help you boost your super and may help you enjoy a more comfortable retirement.
What is an after-tax contribution?
An after-tax contribution is any money you put into your super fund using after-tax dollars and for which you don’t claim a tax deduction. These are often called non-concessional contributions because you have already paid tax on the money.
There are two main types of non-concessional contributions:
personal contributions you make which you don’t claim as a tax deduction in your tax return
any spouse contributions you make directly into your spouse’s super account
What are the benefits?
Making personal (voluntary) contributions on top of employer contributions can make a big difference to your lifestyle in retirement. Many people make after-tax contributions once they have reached their yearly concessional contributions limit (see personal pre-tax contributions for details).
Non-concessional contributions cap
There are limits to the amount of after-tax contributions you can make into your super. You can contribute:
up to $100,000 each financial year, or
up to $300,000 over a three-financial year period, if you're under age 65.
In addition, if your total superannuation balance is over the Transfer Balance Cap (currently $1.6 million) at the end of the previous financial year, you will not be able to make any non-concessional contributions during the year.
These limits apply to each individual, not per fund.
Bring forward rule
Anyone under 65 may be able to make non-concessional contributions of up to $300,000 in a single year for superannuation balances of $1,600,000 or less.
Known as the 'bring forward arrangement', eligible members who make contributions greater than the annual cap automatically gain access to future year caps.
Your total super balance is determined at the end of 30 June of the previous financial year in which the contributions that triggered the bring forward, were made.
This information on this website is provided by Motor Trades Association of Australia Superannuation Fund Pty Ltd (ABN 14 008 650 628, AFSL 238 718) of Level 3, 39 Brisbane Avenue BARTON ACT 2600, Trustee of the MTAA Superannuation Fund (ABN 74 559 365 913). Motor Trades Association of Australia Superannuation Fund Pty Ltd has ownership interests in Industry Super Holdings Pty Ltd and Members Equity Bank Limited (ABN 56 070 88 7 679).
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