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 included in 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 65 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.