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Making Contributions
Making Contributions

Making Contributions

Relying on your employer’s contributions and the Age Pension to support you later in life could easily leave you without enough money for a comfortable retirement.

Making extra contributions could help you make the most of your super contributions and grow your retirement nest egg.

Energy Super could help you find the most tax-effective way to boost your super, particularly when it comes to making additional voluntary contributions.

It’s important to understand how much extra you can contribute to your super before you are liable for added tax.

By making extra contributions you may also be eligible for bonus contributions from the Government.

Not sure what’s best for you? Our expert advice and online tools and calculators can help.

> Employer contributions

You’re eligible to receive superannuation guarantee (SG) contributions from your employer if you earn $450 or more in a month. If you’re under 18, you also need to work more than 30 hours a week.

These SG contributions are based on 9.5% of your 'ordinary time earnings' and are taxed at 15%. The SG rate will increased gradually each year until it reaches 12%.

> Personal contributions

You can make personal contributions into your super as either before tax (salary sacrifice arranged with your employer) or after tax contributions.

You can also make lump sum contributions subject to contribution limits and rules.

If you're self-employed you could be eligible to claim a tax deduction on your super contributions. To claim a personal tax deduction, you'll need to advise Energy Super by completing and returning a Deduction for personal super contribution Form and indicating the amount you intend to claim.

> Spouse contributions

Making contributions for your spouse helps build their superannuation benefit. You may also be eligible to claim a tax rebate.

Contributions must come from your after tax salary and you'll need to put in at least $100 to start the account.

If your spouse's income is less than $10,800 p.a. you can claim a tax offset of 18% of the super contributions (up to a maximum of $3,000 p.a.) made on behalf of your spouse. This gives you a maximum tax offset of $540 a year. The tax offset phases out for incomes between $10,800 p.a. and $13,800 p.a.

> Splitting contributions

Superannuation splitting lets you split your before tax superannuation contributions (employer sponsored or salary sacrifice) with your spouse.

It’s especially useful for couples when one spouse:

  • isn’t working; or
  • earns significantly less than the other; or
  • has very high levels of superannuation compared to the other spouse; or
  • is likely to have high levels of super in the future.

Contribution splitting is attractive if you're interested in a more tax-effective way of saving for retirement.

Contribution splitting gives eligible couples the chance to:

  • Accumulate superannuation benefits more evenly over time
  • Maximise combined tax free thresholds
  • Take advantage of group insurance rates available for Energy Super members.

To find out if you're eligible or for details please refer to the Growing My Super Guide.

> Co-contributions

You may be eligible to receive super co-contributions. If you make after tax contributions the Federal Government may also make contributions (co-contributions) if your income is below a prescribed threshold.

To find out if you're eligible or for details please refer to the Growing My Super Guide.

> Rollovers/transfers

If you have more than one super account, transferring all your funds into your Energy Super account can save you time and money as well as boost your super savings. You’ll also have more control over your investment strategy.

Transferring all your funds into your Energy Super account is quick and easy by completing the Transfer You Super eform.

Learn more about the benefits of rollovers.

> Payment options

Energy Super offers the following flexible payment options:

BPAY® ─ You can transfer contributions directly from your bank account to your Energy Super account. Contact us on 1300 4 ENERGY (1300 436 374) for your personal reference number.

Payroll deduction ─ You’ll need to speak to your employer to ask if you are able to make personal contributions to your super, and arrange deductions from your pay if you’re able to do so. These contributions can be after-tax (i.e. member voluntary) or before tax (i.e. salary sacrifice). More information on salary sacrifice please refer to the Salary Sacrifice Factsheet.

Cheque ─ You can make lump sum contributions by cheque. Simply make cheques payable to 'Energy Super' and enclose a completed Lump Sum Contribution Payment Form.

Electronic Funds Transfer (EFT) ─ You can make contributions by EFT. Just contact us for EFT details on 1300 4 ENERGY (1300 436 374)and complete a Lump Sum Contribution Payment Form.

Direct Debit ─ An easy way to make regular voluntary contributions is by Direct Debit. Just complete a Direct Debit Request Form to nominate the amount you’d like to contribute.  Contributions will then be deducted automatically from your bank account on a monthly basis.

> Contribution limits

There are limits to the total value of contributions you can make or receive without being charged extra tax.

Getting financial advice can help you work out how much extra you can contribute to your super without incurring additional tax.

If you’re under age 65 at any time in a financial year, you may make up to $300,000 in after-tax contributions in the financial year by bringing forward up to two future years' contribution entitlements. Please note that some conditions apply.

The contribution caps for the 2017/18 financial year are:

Concessional contributions cap = $25,000

Non-concessional contributions cap = $100,000* - or $300,000 on a bring-forward basis if you're under age 65^

* You can only make non-concessional contributions in the 2017/18 financial year if your total superannuation balance is less than $1.6 million. If your total superannuation balance is more than $1.4 million, you are exempt from the 'bring-forward' rule.

^If you are under 65 (at any time during the financial year), you can bring forward up to two future years' entitlements by making non-concessional contributions in that year of more than $100,000. Where the 'bring-forward' rule is used, total non-concessional contributions made in the three-year period (starting on 1 July of the first financial year in which non-concessional contributions exceeded the cap) cannot exceed $300,000. For further information about contribution types and limits please read the Growing My Super Guide.

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