If you rely solely on your employer’s 9.5% contributions, you may not have enough money to fund the lifestyle you want when you retire. But don’t despair – you can make extra payments into your superannuation whenever you like. A little bit now could mean a lot more for your future!
Voluntary payments are payments you make into your superannuation from your after-tax income, which means they’re not taxed again when they go into your account or if you withdraw them as cash when you retire.
How do I make voluntary payments?
You can make voluntary payments in a number of ways:
- Direct debit. The amount you nominate (minimum of $20) is debited from your bank account each month and deposited into your Intrust Super account. To set up a direct debit, complete a Member Direct Debit Request Form and send it back to us.
- Payroll deduction. Your contribution is deducted straight from your pay and credited to your Intrust Super account. Check with your employer if you can set up a payroll deduction.
- BPay. Your biller code and reference numbers are on the front of your annual statement. You can also call us on 132 467 and we can give you these codes.
How much can I contribute?
An annual limit of $100,000 applies to all after-tax contributions made to superannuation. This includes voluntary payments and spouse contributions. Contributions that exceed these limits will be taxed at 47%.
If you’re under age 65, you may also be able to make after-tax contributions of up to three times the limit over a three-year period under the ‘bring-forward’ rule. This means that you can contribute up to $300,000 in one financial year, but then nothing for the next two financial years.
If you’re aged between 67 and 75, you can make voluntary contributions up to $100,000 per year if you meet the work test, but the ‘bring-forward’ rule does not apply to you. The work test requires that you work 40 hours in a continuous 30-day period during the financial year.
Once you reach age 75, you can no longer contribute to superannuation.
Visit the ATO’s website for more information about contribution caps.
If you’re a low income earner and make a personal after-tax superannuation contribution during the financial year, the Government could add up to an extra $500 into your super account. Click here for more information.