Contributing to Superannuation

Contributions are classified as either concessional or non-concessional contributions*. Concessional contributions are eligible for a tax deduction by the party paying the super contributions and include employer super contributions and some voluntary personal contributions. Non-concessional contributions on the other hand include voluntary personal after-tax contributions made by a member and are not eligible for a tax deduction.

There are a number of ways for additional voluntary (non-mandated) contributions to be made into super.

Some of the more common ways include:

  • Salary sacrifice;
  • Personal tax deductible contributions; 
  • Personal non tax deductible contributions;
  • Spouse contributions; and
  • Government co-contribution.

We will look at each of these separately.

Please note: From 1 July 2019, trustees are required to transfer certain super accounts to the ATO that are classified as inactive low-balance accounts. The ATO will consolidate amounts that have been paid to them as unclaimed money into an active superannuation account within 28 days of being matched.

These super accounts include inactive accounts (accounts that have not received a contribution or rollover in the previous 16 months) and low-balances (<$6,000). Members are able to search for lost super through their myGov account.

*Excluding the downsizer contribution.