Making contributions

Contributions to your super account are the building blocks of your retirement savings. Compulsory employer contributions are the foundation blocks, providing you with a degree of security in retirement. To build your super so that you can live the lifestyle you want in retirement, you should consider the different contribution options available to you.

Generally, contributions are considered to be 'concessional' or 'non-concessional'.

Concessional contributions

Concessional contributions are contributions made with pre-tax income. They are called concessional contributions because income directed to superannuation is taxed at a concessional rate – generally a lower rate than other income.

Concessional contributions are usually made by employers, on an employee’s behalf. They include:

Non-concessional contributions

Non-concessional contributions generally come from your after-tax income. They include:

Other contributions

Other contributions that may form an important part of your overall strategy are:

Contribution Caps

Limits apply on the amount of concessional and non-concessional contributions you can make each year.

For information on how contributions are taxed and what happens if you breach the caps, see Tax on Contributions.

Contribution Limits for the 2016-17 Financial Year

 

Before Tax

(Concessional)

After Tax

(Non-Concessional)

Types of contributions included

Employer

Salary sacrifice
Self-employed

Voluntary contributions

Spouse contributions

Contribution Cap

If under age 50: $30,000* per year

 

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

 

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