Got some spare money that you have paid tax on? Put it into your super and you may be able to claim a tax deduction.
What is an after-tax contribution?
Also known as a non-concessional contribution, you can make an after-tax super payment from money you have already paid income tax on and will not be claiming a tax deduction on. For example, you could make a lump sum contribution using money from your savings, an inheritance or the sale of an asset.
Can I claim a tax deduction on my after-tax contribution?
If you have provided us with your tax file number (TFN) and decide to claim a tax deduction on your after-tax contribution, doing so could be beneficial given that your contribution will only be taxed at 15% if you earn less than $250,000 a year, or 30% if you earn $250,000 or more. These taxes are usually lower than what most people would pay on their taxable income.
Claiming a tax deduction on your after-tax contribution would turn it into a concessional contribution. Therefore, you may like to check that you are still within the concessional contributions cap across all your super funds as you could pay extra tax if you exceed the limit. To check the amount of concessional contributions for your Australian Catholic Superannuation account, log in online. You can find this information in the ‘Super balance history’ section under the ‘Dashboard’ tab.
What are the rules to make an after-tax contribution?
You can make after-tax contributions of up to the non-concessional contribution cap of $110,000 per annum. If your total super balance across all your super funds is greater than $1.7 million as at 30 June of the previous financial year, you will not be eligible to make after-tax contributions.
However if you’re 67 years or under, you may be able to use the bring-forward arrangement and make after-tax contributions of up to three times the annual cap over a three year period.
Bring-forward period effective from 1 July 2021
|Total super balance across all your super funds on 30 June of previous year||Non-concessional contributions cap for the first year||Bring-forward period|
|Less than $1.48 million||$330,000||3 years|
|$1.48 million to less than $1.59 million||$220,000||2 years|
|$1.59 million to less than $1.7 million||$110,000||No bring-forward period|
|$1.7 million or more||Nil||Not applicable|
The increase in the non-concessional contribution cap will not apply to you if you trigger the bring-forward arrangement prior to 1 July 2021.
If you intend to use up your future year caps in one year, you’ll not be able to make any additional non-concessional contributions for two additional financial years. Ensure that you don’t exceed this cap across all your super funds as doing so could mean that you have to pay extra tax. To check if you’re nearing the non-concessional contribution cap, log in to your Australian Catholic Superannuation account and other super accounts you may have.
For those who are 67 years or older, you will not be able to access the bring-forward provision.
If you’re between 67 and 74 years old, you must fulfill a work test¹ that shows you were employed for at least 40 hours over a consecutive 30-day period before you can make voluntary super contributions.
Those who are 75 years or older are not eligible to make after-tax contributions.
To learn more about after-tax contributions, visit the ATO website.
¹ If you are aged between 67 and 74 with a total superannuation balance across all your super funds of less than $300,000 as at the previous 30 June, you’re able to make an after-tax contribution for 12 months from the end of the financial year in which you met the work test. This work test exemption can only be used once.
Government co-contribution scheme
You may also be able to benefit from the government’s co-contribution scheme if you make a post-tax contribution and meet the ATO’s eligibility criteria.
How do I make an after-tax contribution to my super?
Log in to your Australian Catholic Superannuation account. Under the ‘Self-service’ tab, select ‘Make a contribution’. From there, you can choose to make a payment via direct debit, BPAY or a cheque. Details to make a BPAY payment are as follows:
Biller code: 444232
Reference: This is your seven digit account number, which you can find when you log in to your account or from your annual statement.
Contact your bank, credit union or building society to make this payment from your cheque or savings account. Please check with your bank for your transfer limits.
If you make a payment via BPAY or a cheque, please also complete the Lump Sum Contribution form to let us know which investment options you’d like the money to be placed in.
For contributions via direct debit, please ensure you read the Direct Debit Service Agreement before you make a payment.
You can also speak to your employer to request that they make regular after-tax contributions on your behalf.
How do I claim a tax deduction?
You can inform us via the Lump Sum Contribution form at the time when you’re making a payment.
Alternatively complete the Notice of Intent form, which you can download from the ATO website. You can either email the completed form to email@example.com or post it to PO Box 656, Burwood NSW 1805. For more information about the Notice of Intent and eligibility requirements to claim a tax deduction, visit the ATO website.
Is making after-tax contributions suitable for me?
If you need help to assess whether making after-tax contributions is suitable for you, make an appointment with one of our financial advisers.
Any advice on this webpage is of a general nature only, and does not take into account your personal objectives, financial situation or needs. Prior to acting on any information on this webpage, you need to take into account your own financial circumstances, consider the Product Disclosure Statement for any product you are considering, and seek independent financial advice if you are unsure of what action to take.