For most people, the majority of their super will come from their employment in the form of the 'Super Guarantee', a payment of the equivalent of 9.5% of pre-tax income. These contributions are usually taxed at 15%*. This is known as the 'concessional' rate.
Make sure you don’t pay too much tax on your super by providing us with your Tax File Number (TFN).
However, the Super Guarantee isn't the only way to build up your super.
Salary Sacrifice - Employees
If you're an employee, you may be able to put pre-tax income into super, to build more for retirement and pay less tax. You can do this by asking your employer to put some of your pay into your super instead of putting it all into your bank account.
Personal tax deductible - Employees and Self Employed
Since 1 July 2017, all individuals can make personal tax-deductible contributions to super (previously, only the self-employed were eligible).
This is money you contribute to super from your bank account where you have notified TWUSUPER that you intend to claim a tax deduction for those contributions.
This is the money you put into your super from your bank account and for which you do not claim a tax deduction. Because the payment is made after tax, you won't pay any contributions tax when this money enters your fund.
You can make payments to your TWUSUPER account using BPAY®. Get your BPAY® information by calling us on 1800 222 071 between 8am and 8pm (AEST/AEDT) weekdays.
® Registered to BPAY Pty Ltd ABN 69 079 137 518.
Depending on how much you earn each year, the Government can chip in up to $500 to help boost your super when you make a voluntary non-concessional (personal after-tax) contribution to your TWUSUPER account.
Boost your spouse's super
You can help build your spouse’s** super by contributing to their super.
If your spouse earns $40,000 or less, you may be able to claim a tax rebate (or offset) for making an after-tax contribution to their super. To receive the rebate, you'll need to meet the ATO's eligibility rules. To make an after-tax contribution to your spouse's super, complete a Spouse contribution form.
To split your before-tax contributions with your spouse, complete a Contributions splitting application form.
Downsizing contributions for the over 65s
From 1 July 2018, if you are age 65 years or older and meet the eligibility requirements, you may be able to choose to make a downsizer contribution into your superannuation of up to $300,000 from the proceeds of selling your home. See the ATO website to see if you're eligible.
First Home Super Saver Scheme
The First Home Super Saver (FHSS) scheme allows first home buyers to save money for your first home inside your super fund. This will help first home buyers save faster with the concessional tax treatment of super.
There are limits on the amount that can be contributed to your super for concessional tax treatment.
Before tax limits
The before-tax (concessional) contribution limit is $25,000 per financial year. This includes your employer super guarantee contributions, employer additional contributions, and salary sacrifice.
If you exceed the before tax limits, you may need to pay extra tax.
After tax limits
The annual cap for after-tax contributions is $100,000 (or $300,000 over three years brought forward). Once your total super balance reaches $1.6 million, no more after tax contributions will be able to be made.
If you exceed the after tax limit, you may need to pay extra tax. Note that if you're making payments under the Government's Downsizer contribution arrangements applicable from 1 July 2018.
*People earning over $250,000 may pay more tax. The definition of income here includes concessional contributions. If your adjusted taxable income excluding your concessional contributions is less than $250,000, but the inclusion of your concessional contributions pushes your income above $250,000, the additional 15% tax will only apply to the portion of the contributions that are above $250,000. This additional tax may be paid directly by you or released from the Fund. Adjusted taxable income includes taxable income, reportable employer superannuation contributions, deductible personal superannuation contributions, reportable fringe benefits amounts and other sources of income.
**To receive your contributions, your spouse must meet the age and work-hour requirements (contact us for more information). The law defines a spouse as another person (whether of the same or different sex) who is legally married to you, or a person who, although not legally married to you, lives with you on a genuine domestic basis in a relationship as a couple. Income, for the purposes of eligibility for the rebate, includes your spouse's assessable income, total reportable fringe benefits, and reportable employer contributions.