NESS Super

Making Contributions

Tax on super

The Government wants us to save for retirement, so it offers a number of tax incentives to encourage us to invest in super.

Super can be a tax-effective investment

Super is an attractive, tax-effective investment for most people. Here are some of the reasons why:

  • Super funds pay a discounted tax on investment earnings.
  • Super contributions are taxed at 15% if they’re made as before-tax contributions. This includes both the contributions your employer makes and any salary sacrifice contributions you yourself make. Any contributions you make from your after-tax pay are tax-free.
    If you earn $37,000 or less, the tax you have paid on your super contributions will be automatically added back into your super account through the Low Income Super Contribution.
  • From age 60 your super is tax-free when you receive it.

Understanding contribution limits

There are, however, limits to how much you can contribute to super. Exceeding the set contribution limits, for both before-tax and after-tax contributions, means you may pay higher rates of tax. Find out more about super contribution limits at the ATO websiteOpens in new window .

Make sure we have your Tax File Number (TFN)

You don’t have to provide NESS Super with your TFN but if you don’t, any employer contributions and salary sacrifice contributions will be taxed at your top marginal tax rate. And without your TFN, we can’t accept any after-tax contributions you may want to make.

Disclaimer: The information contained in this website is up-to-date at the time of its launch. However some information can change over time. The contents are for general information only and do not constitute personal advice. We recommend that you consult with a suitable qualified person before making any financial decisions.

Make contributions

Give your super a boost with extra contributions. For most of us, employer contributions alone won’t be enough to fund a comfortable retirement. The good news is that there are several ways you can boost your final benefit.

Contribute to super yourself

A great way to boost your super is to make voluntary contributions. Even small contributions can make a huge difference to your super. You can make voluntary contributions from your before-tax pay, known as salary sacrificing, or from your after-tax pay. Find out more about how to make a difference to your super at the Super Guru websiteOpens in new window .

How can I make personal contributions to my NESS Super account?

Personal contributions are the contributions made to your super fund from after-tax pay. These are in addition to the contributions made by your employer and any salary sacrifice arrangements you have.  You can make personal contributions to NESS Super in a number of ways:

  • by pay deduction sent to NESS Super with your employer’s normal contribution return
  • by direct debit made by completing a NESS Super Direct Debit Request formOpens in new window for after tax contributions.
  • by sending a cheque to NESS Super with your member account details. You must include your name and NESS Super Member number with your cheque.
  • by BPAY (your BPAY biller code and customer reference number is on your NESS Super member card).

Salary sacrificing

Most employers let you contribute to your super through salary sacrificing from your before-tax pay. These concessional contributions are treated as employer contributions and are subject to a 15% contributions tax. Because this may be lower than your marginal tax rate, there may be tax benefits to contributing to your super in this way.

Keep in mind that there’s an annual limit on deductible contributions including employer contributions. Any contributions over this limit – currently $27,500 per year – will be taxed at a higher rate than the concessional rate of 15%. Find more information on contribution caps at the ATO websiteOpens in new window .

For the 2021/22 financial year, employer contributions (including salary sacrifice) are capped at $27,500 per year for all individuals. Over the period 1 July 2017 to 30 June 2021, the annual concessional contributions cap was set at $25,000.

After tax contributions

You can also make personal contributions to your super from your after-tax income. These contributions are not taxed when they go into your super.

There are annual limits on after-tax contributions and tax penalties apply if you exceed them. For the 2021/22 financial year the non-concessional contribution cap is $110,000 per year. If you're eligible, you may be able to start a bring-forward arrangement. This allows you to use up to three years of non-concessional contributions caps in a single financial year (3 years x $110,000 = $330,000). Find more information on contribution limits at the ATO websiteOpens in new window .

Spouse contributions

If you contribute to your spouse’s super you may be eligible for a tax offset. The tax offset applies to contributions made on behalf of non-working or low-income-earning spouses, whether married or de facto. The offset is up to 18% on super contributions of up to $3,000. Find more information on the ATO websiteOpens in new window .

Take advantage of government co-contributions

If you’re a low or middle-income earner and you make after-tax contributions to your super, you may be eligible for the government co-contribution schemeOpens in new window . If you are eligible, the government will match your personal super contributions up to a set maximum amount.

You don’t need to apply. If you’re eligible, all you need to do is make eligible personal super contributions to your super fund and lodge an income tax return for the relevant year.

Self-employed contributions

If you’re self-employed or work as a contractor, it’s important that you contribute to your super. If you are self-employed you can claim your super contributions as a tax deductionOpens in new window . NESS Super can accept contributions from self-employed people as we are a public offer fund.