Tax on contributions

Concessional contributions include:

• Employer contributions
• Salary sacrifice contributions
• Self-employed contributions (for which a tax deduction has been claimed)

You can make contributions up to the cap amount to your super account each financial year and pay the concessional super tax rate of 15%.

If you are aged 50 or over you can make concessional contributions of up to $50,000* each year until 30 June 2012. You must be 50 or over in the financial year when the contributions are received by Media Super.

What if I exceed my concessional contribution cap?

Concessional contributions in excess of these caps will attract the highest marginal tax rate (plus Medicare levy), currently 46.5%.

If you exceed the cap the Australian Taxation Office (ATO) will write to you advising you of the additional tax. You can elect to pay this addtional tax from either your super account or another source. You will be required to advise the ATO of your method of choice and pay the penalty within the timeframe specified.

* Applicable for the 2010-11 financial year. 

Non-concessional contributions include:

• Voluntary contributions
• Spouse contributions

You can make contributions up to the cap amount to your super account each financial year and pay no tax on the amount. Non-concessional contributions have already been taxed in the income tax system, therefore they do not attract any further tax.

What are the special rules?

If you are aged 65 or over, you can make non-concessional contributions up to the contributions cap amount to your super, provided you meet the work test.

If you are under 65 you can make additional non-concessional contributions to your account in one financial year. You can contribute up to $450,000* in 2010-11. If you elect to exceed the contributions cap amount in a particular year, you are then only entitled to contribute an amount not more than $450,000 in total over the three years comprising that financial year and the subsequent two financial years.

Media Super is not permitted to receive contributions from you in excess of these caps. 

* Applicable for the 2010-11 financial year.  

What if I contribute to multiple super accounts?

If you make non-concessional contributions across multiple super funds and the total exceeds your relevant contributions caps, the excess will be taxed at the highest marginal tax rate (plus Medicare levy), currently 46.5%.

If you breach the non-concessional contributions cap the ATO will write to you advising you of the additional tax. The additional tax will be deducted directly from your nominated super account.

What if I breached my concessional contributions cap?

If you exceed the relevant concessional contributions cap in any financial year, your non-concessional contributions cap will be reduced. The non-concessional contributions cap will be reduced by the amount you contributed in excess of the concessional contributions cap.

Capital Gains Tax (CGT) cap

You can make non-concessional contributions for income already taxed under CGT without adding to the non-concessional contributions cap, up to the CGT cap amount during your lifetime. The CGT cap amount applies to all excluded CGT contributions made from 10 May 2006.

Tax is not applicable on Federal Government co-contributions or super-splitting transfers for the receiving spouse.

Any rollover amount (transferring super from another super fund to your Media Super account) will not be taxed unless an untaxed rollover amount (previously called a 'post-June 1983 untaxed element') is included, which will be taxed at 15%. This untaxed rollover amount is usually only applicable if you are transferring from an untaxed superannuation fund. For Media Super members, tax has already been deducted by us, so this tax will not apply if you roll over your account to another fund.