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After-tax contributions

Personal after-tax contributions

After-tax (or non-concessional) contributions are a great way to boost your super savings. You can make a one-off payment or regular payments throughout the year. Either way, these contributions are not taxed going into your super (because they have already been subject to income tax). 

You can make up to $110,000 (or up to $330,000 using the three-year bring forward rule^) of after-tax contributions into your super per year. The amount you can bring forward decreases once your total super balance has reached $1.48 million. If your total super balance is more than $1.7 million, you can no longer make any after-tax contributions. 

With this type of contribution you may also qualify for the Government co-contribution payment. After-tax contributions can also be used to help you save on income tax – see ‘How super works’ below.

 

Eligibility

If you’re under the age of 75, you are no longer required to meet a work test to be eligible to make after-tax contributions into your superannuation account. The other normal eligibility criteria such as a Total Super Balance (TSB) of less than $1.7 million and the annual non-concessional contribution cap still apply. Once you turn 75, you can no longer make after-tax contributions. Remember, we must have your tax file number to be able to accept contributions.

If you want to claim part of your after-tax contribution as an income tax deduction, then you must meet the work test of at least 40 hours work over 30 consecutive days in the financial year you wish to make the claim. Alternatively, you may be eligible if you’ve met the work test the previous financial year and have a total super balance of less than $300,000. Contribution caps also apply when claiming contributions as an income tax deduction.

Claiming a tax deduction on personal after-tax contributions

If you make personal after-tax contributions, you will have the option to claim a tax deduction. This is helpful if you are self-employed or are unable to salary sacrifice with your employer.  

Claiming after-tax contributions as a tax deduction reduces your taxable income whilst increasing your savings for retirement.  It can be particularly beneficial because the contribution is taxed at 15% in the super fund instead of your marginal rate of tax which can be a lot higher. 

We always recommend you get professional advice before making a decision on how much to contribute or claim. 

Remember also that tax-deductible contributions are limited to $27,500 per year.  If your employer makes super contributions into your account (generally 10% of your salary), then this is counted towards the $27,500 limit.  
For more information, view our ‘How Super works’ document. 

Important: If you make an after-tax contribution and want to claim it as a tax deduction, you’ll need to let us know by filling in the Notice of intent to claim form below and sending it back to us no later than whichever of these occurs first: 

  • The day you lodge your next tax return (for the financial year the contribution/s were made in); or 
     
  • Up to the end of the financial year after the financial year that the contribution/s were made in. For example – for contributions made in March 2022, you have until June 30 2023 to submit your request, assuming you haven’t lodged your tax return yet. 

Once the form has been submitted, we’ll issue you a letter for tax purposes. If you don’t let us know, it will remain as an after-tax contribution and count towards your non-concessional annual limit ($110,000pa). You may not be eligible for any tax benefits if you exceed the annual concessional contributions cap.

Please return your completed form to Equip, GPO Box 4303, Melbourne VIC 3001. 

Warning: If you have made a non-concessional (i.e. personal) contribution into your super account for which you will be claiming a tax deduction, the claim must be made before you move your super money into a pension. If we receive your notice of intent to claim a tax deduction after your pension is set up, and an income stream has commenced based on whole or part of the contribution, the notice will not be valid, and you will not be eligible to claim it as a tax deduction.


Things to consider

  • The “best” contribution depends on your circumstances, such as your income, tax situation and age. 
  • Get help if you need it: we can provide you with information and advice to help you make the most of your contributions. 
  • Contributions made into your super cannot be withdrawn until age 65 or if you retire and reach your preservation age. 
     

We’re here to help

If you have questions about after-tax contributions, we can help. Contact us on 1800 682 626 between 8:00 am and 8:00 pm AEST Monday to Friday or make an enquiry online. 

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