Making an after-tax contribution to your super allows you to choose whether you want to contribute a little or a lot each pay period. By contributing to your super this way, the money is taken out of your pay before you receive it, so you won’t miss it as much!
Or you can just make a one off contribution into your super – maybe you receive a bonus or an inheritance.
Every contribution you make can really boost your savings and by starting sooner, the effects of compounding earnings can benefit your account balance over the long-term.
Example of how after-tax contributions can work:
Sarah is 21 years old, on a salary of $35,000 and receiving the 9% super guarantee from her employer. Let’s assume for this example that Sarah has no accumulated super.
The graph below shows how much better off she will be at age 60 by making additional after-tax contributions of $20, $50 or $100 a week.
Source: ASICS’s FIDO super calculator at 1 July 2009. Estimates based on ASIC’s standard assumptions (including 8% gross return, 2.5% inflation, 1% rise in living standards – see www.fido.asic.gov.au for more information) and Health Super’s fees and costs for its balanced option including an asset fee but excluding insurance premiums. Government Co-Contributions are not included. Estimates don’t take into account your personal situation or guarantee future benefits. Past returns aren’t a reliable indicator of future returns. Assumptions may not materialise and may be affected by unknown risks and uncertainties.
If you’re interested in this option to boost your super balance, you will be required to provide us with your TFN. If you’re unsure if we have your TFN recorded, please call us on 1800 331 719 or check your member benefit statement.
If you’d like to make an additional contribution to your super, you should complete the Boost my super form.
Limits on after-tax contributions
After-tax contributions in excess of $150,000 each year (or if you’re under age 65, $450,000 over three years) will be taxed at the top marginal tax rate (plus Medicare levy).
How do you make a contribution to your super?
We make it as easy as possible for you to make a contribution to your super, by providing you with a choice of 4 simple options, including:
- Regular after-tax or before-tax contributions – just ask your employer to deduct your nominated amount (either $$$ or percentage) from your salary each pay period and put it into your super. Alternatively, you can download the Boost my super form and return it to your HR/Payroll department so they can process your request.
- Lump sum payments – to make a one off payment, all you need to do is complete the Boost my super form and return it to us with a cheque for the amount you wish to contribute.
- Direct debit– to top up your super directly from your nominated bank account, complete the Boost my super form.
- BPAY – to make a contribution into your Health Super account, please use the following reference numbers:
