Superannuation FAQs

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Questions about salary sacrifice and superannuation? Read Roger Boghani FAQs for answers. If you can’t find what you’re looking for, call us at 0452 669 147 today.

I want to contribute extra money to my superannuation account. Are there superannuation contribution limits?

There's a limit to how much money you can put into your superannuation fund with tax benefits each year. This limit is there to control the tax advantages.

If you put in more money than this limit, you'll have to pay extra tax, and the excess amount counts towards another limit for different types of contributions.

Concessional contributions are the ones you get a tax deduction for. They include contributions from your employer and the ones you make personally. The current limit for concessional contributions is $== each year, no matter your age. But if you have less than $500,000 in your superannuation fund at the end of the year before you make the contribution and you haven't used all your limit in the past, you can put in more by using the unused amounts from 2019 onwards, for up to 5 years.

Starting from July 1, 20==, if you're under 75 years old, you don't need to prove you're working to make or receive certain types of contributions. But if you're 67 to 74 years old, you still need to show that you've been working for at least 40 hours in a 30-day period during the year when you make these contributions.

Non-concessional contributions are made with after-tax money, and there's no extra tax when you put them in your super fund. But the regular tax rates apply to what your money earns in the fund.

The limit for non-concessional contributions is $== per year. There's a rule that lets you put in up to three years' worth of these contributions in a single year.

Until June 30, 20==, you had to be under 67 to use this rule. But from July 1, 20==, it expanded to include people up to age 75, allowing those in their early 70s to use this rule as well.

I have been thinking about salary sacrificing money into my superannuation account? Is there a limit to how much I can salary package?

Money put into your superannuation fund by your employer to meet Superannuation Guarantee requirements and money put in through a salary sacrifice agreement are called concessional contributions.

Salary sacrificing means asking your employer to put some of your pre-tax earnings into your super fund. These contributions are taxed at a rate of 15% within the super fund. For most people, this tax rate is lower than their regular income tax rate.

The limit for concessional contributions is $== per year for each person. If the total of what your employer puts in, any contributions you make and the salary sacrifice contributions go over this limit, you might have to pay extra tax. However, if you have less than $== in your super fund at the end of the year before you make the contribution and you haven't used up your limit in the past, you can put in more by using the unused amounts from 2019 onwards, for up to 5 years.

Before setting up salary sacrifice into your super, it's a good idea to check your employment agreement or talk to your employer.

I am over 60 years of age and retired. Will my superannuation pension be tax free in future?

Once you turn 60, you won't have to pay tax on the money you get from your superannuation if it comes from a fund where taxes were already paid on the contributions made by your employer or through a salary sacrifice arrangement. Most funds are like this, so you won't be taxed on your super income once you're 60.

However, if you were in a special type of fund where taxes weren't paid on the contributions, you'll still have to pay tax on your super income, no matter how old you are.

If you're over 60 and getting super income from a taxed fund, you won't receive a PAYG income statement for it.

I pay extra contributions to my superannuation fund. Can I claim this on my tax return?

Now, even if your employer is putting money into your super, you can also add your own and get a tax break for it.

The money you put in and claim as a tax deduction adds up with what your employer pays and any salary sacrifice contributions you make to your super. There's a limit of $== for this total, and if you go over it, you might have to pay extra tax. But starting from 2019, if you haven't used up your limit for the year, you can save the extra amount for use in a future year, up to 5 years.

If you claim a tax deduction for a contribution you make, you won't be eligible for the super co-contribution for that amount.

You need to tell your super fund in advance that you intend to claim a tax deduction. You can use this form (https://www.ato.gov.au/uploadedFiles/Content/SPR/downloads/n71121-11-2014_js33406_w.pdf) to do that before you file your tax return or by the next June 30, whichever comes first. Your super fund must acknowledge that they've received your notice before you claim the tax deduction.

If you add money to your super without claiming a tax deduction, it's treated differently and won't be taxed in the fund. You might even be eligible for a co-contribution for those amounts you didn't claim as a tax deduction

Why am I being asked to tell my superannuation fund what my tax file number (TFN) is?

If you don't give your superannuation fund your TFN (Tax File Number), they'll have to pay extra tax on the contributions your employer makes, including any salary sacrifice money.

Also, if your TFN isn't on record, your fund won't be able to accept any personal contributions you make, and you won't receive any government co-contributions you might be eligible for.

If you have tax questions, don't worry, we're here to help at Roger Boghani. You can find a nearby office and book an appointment online or call 0452 669 147.

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