Contributions

Super can be a tax effective way to grow your savings as it allows you to avail of concessional rates of tax compared to other types of investments. However, there are limits or caps in place on how much you can contribute to your super on the tax concessional basis in any financial year. The table below has details of the concessional tax rates and the contribution limits.

Tax Rates and Contribution Limits for the 2016-17 Financial Year

 

Before Tax

(Concessional)

After Tax

(Non-Concessional)

Types of contributions included

Employer contributions

 

Salary sacrifice

 

Deductible personal after-tax contributions by a self-employed member

Voluntary contributions

 

Spouse contributions

Contribution Cap

If under age 50: $30,000*

 

If turning age 50 or older in 2016-17: $35,000

$180,000

 

Under 65: bring forward 2 years of contributions in a single year to a limit of $540,000 over 3 years

Tax on contributions up to the cap

15%

 

For individuals with adjusted income and certain contributions of $300,000+ : 30%

Nil

Tax on excess amounts breaching the cap

Your marginal tax rate less a 15% tax offset

49%**

 *Indexed annually in line with Average Weekly Ordinary Time Earnings, in increments of $5,000 (rounded down).

**Includes Medicare levy.

Note: The contribution caps apply to all contributions made by you, or on your behalf, in the financial year to all of your super funds.  As Media Super will not be aware of your contributions to other super funds, it is up to you to monitor the total amount of contributions made by you or on your behalf in any financial year.

Tax on concessional contributions

Concessional contributions, up to the concessional contribution caps, are usually taxed at 15% provided a Tax File Number (TFN) is held by the receiving fund.

Any amount over the non-concessional contributions cap will be included in your assessable income and will be taxed at your marginal tax rate (plus Medicare Levy). The excess contributions will also count towards your non-concessional contribution cap. If you exceed your concessional contributions cap, you will also have to pay an excess concessional contributions charge.

If you do make excess concessional contributions, you can request that up to 85% of the excess contributions be released from the fund and taken as income. You can access a non-refundable 15% tax offset on the refunded amount to account for tax already paid on your excess contributions by the fund.

If your adjusted income and certain contributions exceed $300,000, you will generally be liable to pay additional tax on your concessional contributions (Division 293 tax).

Tax on non-concessional contributions

Non-concessional contributions are after tax contributions for which no tax deduction can be claimed. The non-concessional contribution cap is $180,000 for the 2015/16 financial year.

Persons under age 65 can ‘bring forward’ 2 years’ worth of non-concessional contributions. This means that for 2015/16 a person could contribute $540,000 over 3 years without exceeding the cap.

If you exceed this cap, you will be liable to pay tax on the excess contributions at a rate of 49% (including Medicare Levy).

Media Super is not permitted to receive one-off contributions from you in excess of the non-concessional contributions cap.

What if I exceed my contribution cap?

If you exceed the contribution caps the Australian Taxation Office (ATO) will send you an assessment notice advising you of the additional tax, how to pay it and whether you are eligible to apply for a refund of your excess contributions.

For excess concessional contributions, you can elect to pay the additional tax from your super account or another source or a combination of both. You will be required to advise the ATO of your payment method of choice and pay extra tax and any penalty within the timeframe specified. If you choose to pay the tax or a portion of the tax from your super account, you must provide an ATO Voluntary Release Authority to allow your fund to release the amount from your super account.

Additional tax payable on excess non-concessional contributions must be deducted directly from your nominated superannuation account. You will need to provide an ATO Compulsory Release Authority to authorise your fund to release the excess tax amount.

What if I contribute to multiple super accounts?

Each super fund holding an account for you must provide the Australian Tax Office (ATO) with details of contributions received from you or on your behalf.

Whether you make contributions just to Media Super or across multiple super funds, the same contribution caps will apply to your total contribution. Any excess contributions will be taxed at the rate applicable to the type of contribution.

What if I have not provided my TFN?

If Media Super does not hold your Tax File Number (TFN) at the end of the financial year, you may end up paying additional No-TFN tax at 30% (plus Medicare Levy) on your employer contributions and any tax deductible personal contributions. However, you may be apply for a refund of this no-TFN tax if you supply your TFN to Media Super within the three financial years following the financial year that the no-TFN contributions were paid.

Media Super cannot accept your non-concessional contributions unless we have a valid TFN on record for you.

Government contributions and super-splits

Tax is not applicable on Federal Government co-contributions or Low Income Super Contributions.

You may be able to split up to 85% of your concessional contributions in a financial year with your spouse, up to your concessional contributions cap. The amount transferred to your spouse’s super account does not reduce the concessional contributions counted towards your cap, nor your concessional tax liability. Tax is not applicable to the receiving spouse. For further details of the requirements for super-splits read our super-splitting page.

Rollover contributions

Rollovers will not be taxed unless an untaxed rollover amount (previously called a ‘post-June 1983 untaxed element’) is included, which will be generally taxed at 15%.

The untaxed amounts above $1.395 million (for 2016-17) are taxed at 49% (including medicare levy) and withheld by the paying fund.