After tax contributions
Adding to super from your take-home pay or personal savings, after income tax has been paid. Take a look at the benefits, caps, how to make contributions & what to do if you decide to make a tax deduction.
What are after tax contributions?
After tax super contributions are the amounts you contribute to your super fund from your after-tax income (your take-home pay). These contributions are in addition to any compulsory super contributions your employer makes on your behalf.
The below list contains different names for this type of contribution. They all mean the same thing - that you're paying money to your super account, after your income tax has been deducted (e.g. from your bank account), and you aren’t claiming a tax deduction for the amount.
- After tax; and
- Non-concessional contributions.
You can make voluntary contributions as often as you like, up to the cap amount.
What are the benefits?
- Investment earnings in your super fund are only taxed at 15%, up to the cap amount, not your marginal tax rate
- You can reap the benefits of compounding interest
- The annual cap for after-tax contributions is $100,000
- If you are eligible, you might be able to use the bring-forward rule to contribute up to $300,000 in a single year
- Making after-tax contributions may also help an investor qualify for benefits such as the co-contribution or the spouse contributions offset; and
- An after-tax contribution to super may not only boost the tax-free part of an allocated pension in retirement but also could minimise tax paid on a death benefit to non-dependent adult children.
How to make after tax contributions
We've established options for you to make after tax contributions in various ways, so there's a convenient payment method to suit everyone's individual needs.
- Electronic Funds Transfer (EFT)
- Monthly Payments - Direct debit
- In person by cheque
- By post with a cheque
- Real Time Gross Transfer (RTGS)
Call our Client Service Centre on 1800 060 312 to obtain your unique BPAY Reference Code. You also need legalsuper's Biller Code which is 29728. You can make a once off payment or create a recurring payment.
ELECTRONIC FUNDS TRANSFER (EFT)
You must include your membership number in the transaction description.
Make your EFT to:
Bank account name: legalsuper
Bank: Westpac Banking Corporation
Account number: 560011
SWIFT code (for overseas transfers): WPACCAU2S
Branch address: Corner of Pitt & Bridge Streets Sydney, NSW 2000
Please remember to include your membership number in the transaction description.
MONTHLY PAYMENTS - DIRECT DEBIT
Set up monthly direct debits from your bank account by completing and returning our direct debit request form to legalsuper. To delay, cancel or change your Direct Debit, you would need to advise us in writing at least three business days before the date we will debit your bank account.
Download direct debit request form:Direct debit request (80.85 KB)
IN PERSON BY CHEQUE
Visit legalsuper between 9.00am - 5.00pm in Melbourne, Sydney or Brisbane. Please note that legalsuper is unable to accept cash.
Level 37, 140 William St
Suite 2, Level 27 Governor Macquarie Tower
1 Farrer Place,
179 Ann St
BY POST WITH A CHEQUE
Prepare a brief cover letter, make you cheque payable to “legalsuper”, put your name and membership number on the back of the cheque and mail it to:
Locked bag 5081
REAL TIME GROSS TRANSFER (RTGS)
To arrange a contribution by RTGS you will need to contact your bank and provide them with the same details as an EFT payment. Please remember to include your membership number in the transaction description.
If legalsuper is unable to determine the owner of the contribution, we are obliged to remit the contribution to the Australian Securities and Investments Commission (ASIC).
Should you identify that your contribution has not been applied to your account within five business days, please contact legalsuper. However, delays may be experienced during peak periods, e.g. end of financial year. Provided completed documentation is received, contributions will be applied in the financial year of which the contribution was received.
Claiming tax deduction on after tax contributions
If you meet the eligibility requirements and legalsuper receives your payments by 30 June, you may receive a tax deduction for personal contributions that you pay into your super.
Am I eligible?
You are, if:
- you made personal contributions into your legalsuper account
- you meet the age-related conditions
- you made the contributions in order to obtain super benefits for yourself, or for your dependants in the event of your death
- you have written to legalsuper or completed a 'Notice of intent to claim' form advising the amount you intend to claim as a deduction; and
- legalsuper has acknowledged your notice of intent and agreed to the amount you intend to claim as a deduction.
What are the ‘maximum earnings as an employee’?
You can claim a deduction on personal contributions, even if you receive some income as an employee.
From 1 July 2017, the requirement that you derive less than 10% of your income from employment sources has been abolished and regardless of your employment arrangement you may be able to claim a tax deduction. Those aged 65 to 74 will still need to meet the work test in order to be eligible to make a contribution and claim a tax deduction.
|John is a full-time lawyer. During the 2017-18 year, he earned $70,000 before tax. John has no other income. |
John makes a personal contribution to an eligible super fund and notifies them that he intends to claim a deduction.
John's super fund acknowledges that John will claim a $15,000 deduction and taxes the contribution at 15%. John is eligible to claim a deduction for $15,000 and does this in his 2018 tax return.
What are the age restrictions?
If you are 75 or over, you can only make and claim a deduction for your personal super contributions you made before the 28th day of the month following the month in which you turned 75.
If you are under 18 at the end of the income year, you can only claim a deduction for your personal super contributions if you earned income as an employee or a business operator during the income year in which you claim the deduction.