Join Master Your Money | Online Wealth Coach

Super contributions

If you’re employed, your employer should be paying a percentage of your earnings into your super account.

It’s worth checking to make sure you’re being paid the right amount.

If you can afford it, making extra contributions is a great way to boost your retirement savings. And it can reduce your tax. If you’re on a low income, you may be eligible for extra contributions from the government.

Check you’re getting the right amount of super

In most cases, you’re eligible to receive super from your employer if you:

  • earn $450 or more in a month

  • are aged 18 or over

Even if you have a casual job, your employer must pay you super.

If you’re under 18, you must work more than 30 hours a week.

See employees on the Australian Taxation Office (ATO) website for more information about eligibility.

How much super your employer must pay

Your employer must pay at least 9.5% of your ‘ordinary time earnings’ into your super account.

This minimum payment is called the super guarantee.

Ordinary time earnings are what you earn for your ordinary hours of work. See checklist: salary or wages and ordinary time earnings on the ATO website.

Check how much super you’re getting

To see how much super your employer is paying you, check your:

  • payslip

  • myGov account

  • super account — online or by calling your fund

Employers only have to transfer super into your super account once a quarter (every three months). Some choose to pay more often. Ask your employer how often they pay yours.

If your employer is not paying your super

If you’re not getting the right amount, talk to your employer.

If your employer isn’t paying your super, report them to the ATO. See unpaid super from your employer on the ATO website.

Grow your super with extra contributions

You can grow your super by making extra payments yourself. Even small amounts add up over time, and voluntary contributions can reduce the amount of tax you pay.

If you’re on a low income, you may be eligible for extra contributions from the government.

Pre-tax super contributions: salary sacrifice

You can ask your employer to pay part of your pre-tax pay into your super account. This is known as a salary sacrifice or salary packaging.

The payments, called concessional contributions, are taxed at 15%. For most people, this will be lower than their marginal tax rate. You benefit because you pay less tax while you boost your retirement savings.

Generally, making extra concessional contributions is tax effective if you earn more than $37,000 per year.

There’s a limit to how much extra you can contribute. The combined total of your employer and salary sacrificed contributions must not be more than $25,000 per financial year.

If you’re self-employed, concessional contributions are tax deductible. See super for self-employed people.

Make after-tax super contributions

You can also make contributions to your super from your after-tax pay.

These payments are called non-concessional contributions because you have already paid tax on the money. You can make up to $100,000 in non-concessional contributions each financial year.

See non-concessional contributions on the ATO website for more information.

Low income super tax offset

If you earn $37,000 or less, you may be eligible for a low income superannuation tax offset (LISTO) of up to $500 per year.

You don’t need to do anything. The ATO will work out your eligibility and pay the money into your super account.

See low income super tax offset on the ATO website.

Government co-contributions

If you earn less than $52,697 per year (before tax) and make after-tax super contributions, you may be eligible for a matching contribution from the government, called a co-contribution. The government will work out how much you are entitled to when you lodge your tax return. If you’re eligible, the government will pay the co-contribution directly to your fund. See super co-contribution on the ATO website.

Downsize your home and put money into super

If you’ve owned your home for more than 10 years and you sell it, you may be able to contribute up to $300,000 from the sale to your super.

You must be age 65 or older and meet the eligibility requirements. See downsizing contributions into superannuation on the ATO website.

Spouse contributions

You can split your employer super contributions with your spouse. Contact your fund or see contributions splitting on the ATO website for more information.

If your spouse earns a low or no income, you may be able to claim a tax offset if you contribute to their super fund. See tax offset for super contributions on behalf of your spouse on the ATO website. 

Casy Study

Cara boosts her super by salary sacrificing

Cara earns $90,000 before tax, excluding her employer’s super contribution. If she decides to redirect $10,000 of her pay into salary sacrifice super contributions, she will save $3,450 in tax, with the extra money going into her super fund.

Cara’s income

Without salary sacrifice

With salary sacrifice

Gross salary



Less salary sacrifice to super



Less tax and Medicare levy



Take home (net) pay



Cara’s super



Employer super contribution



Plus salary sacrifice



Less contributions tax



Net super contribution



Assumptions: The figures used in this table are estimates only and are based on 2018—19 income tax rates. They include the low and middle income tax offset and a Medicare levy of 2%. Employer super contributions remain the same after salary sacrifice.

In this scenario, Cara’s take home pay will drop by $6,550. Cara will save $1,950 in tax on income and super, and have an extra $8,500 in her super.

For more information, call us on .

Reproduced with the permission of ASIC’s MoneySmart Team. This article was originally published at

Important note: This provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.  Past performance is not a reliable guide to future returns.

Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

The post Super contributions appeared first on FPG Independent Social & Individual Website Feeds.

Looking to reach and
exceed your money goals?

Master Your Money | Online Wealth Coach is your step-by-step guide to insider financial planning secrets in a 12-module online format, covering every money-topic for all financial circumstances.


Provided in an easy to digest and hands-on format, the platform was built with you in mind so that you feel empowered to reach your financial goals, at your own pace in the comfort of your home!


  • Unlimited Wealth Coach Access
  • Downloadable Wealth Bundle with Worksheets and Resources
  • Access to Supportive Facebook Group