How to top up your super
Super is a long-term investment, but it rewards short-term action. Topping up your super can let you tap into compounding returns that grow your balance over time. That’s today you looking after future you.
The benefits of investing extra in your super (and self) today will pay dividends in the years to come thanks to the power of compound interest and returns. Plus, it just feels really damn good to know that you’re taking an extra step to financially support future you, today.
Deciding how much to contribute to your super is personal. The right contribution amount depends on:
Your income and cash flow
How long you’ve got until retirement
How much you’re already contributing
Once you’ve made a plan, the process of building your super balance is pretty straightforward.
In this guide, we cover the two main types of contributions (and the limits that apply), and how to make a contribution if you’re a Verve member.
Option 1: Concessional Contributions
Translation: payments from your pre-tax income, or ones you claim a tax deduction for
Concessional super contributions are the most common way to boost your super. These are payments made into your super fund from your pre-tax income. They’re taxed at a ‘concessional’ tax rate – generally 15% – which is often lower than your personal income tax rate.
So, what counts as a concessional contribution?
The super your employer has to pay under the super guarantee (SG) – currently 12% of your salary
Extra voluntary contributions you make through a salary sacrifice arrangement with your employer
Contributions you make independently, for which you claim a tax deduction*
Is there a limit?
Yep! The concessional contributions cap is $30,000 per financial year for all the above concessional contributions combined. It’s your responsibility to stay on top of this cap. You can check your concessional contributions through your MyGov account.
Want to add more?
If your total super balance (across all funds you hold) is less than $500,000 you may also be able to access previously unused concessional contribution limits from the last five years. If you have unused limits that are available to you, they will automatically be applied to your account. This is known as the ‘carry forward’ provision for concessional contributions. Your MyGov account is the best place to check if you have this option available. You can also speak to our Coach team for more information about the ‘carry forward’ rule.
How to make a concessional contribution
Salary sacrifice: Set this up directly with your employer. You can adjust the amount any time, depending on your employer’s payroll rules and systems.
Personal deductible contributions: If you’re self employed or your employer doesn’t do salary sacrifice, you can still convert independent after-tax contributions to concessional contributions by notifying your super fund. Just make sure it’s set up before you do your tax return.
*You’ll need this ‘Notice of Intent’ (NOI) form here, to claim a tax deduction.
Option 2: Non-concessional contributions
Translation: payments from your after-tax income – or from your partner
These are payments made from your post-tax salary (or by your spouse or de-facto partner), usually via BPAY. No etra tax applies, because you’ve already paid tax on your income. Any earnings you make on these deposits are taxed at the lower super rate of 15% inside your Verve account.
Is there a limit?
Yes - the cap for after-tax contributions is $120,000 per financial year.
Want to add more?
If eligible, you can bring forward up to two future years’ worth of caps. This “bring-forward” provision means you can up to $360,000 to your super in a single financial year – a popular move with downsizers. You don’t need to tell the ATO or your super fund, just deposit the money into your super. But it’s on you to check your eligibility and stay within the cap.
Eligibility rules are linked to your age and your total super balance. A Verve Coach or with licenced financial adviser can help you check if this strategy is right for you. Adding to super means locking away your money until you retire or meet another condition of release so it’s worth getting advice.
How to make a personal after-tax contribution at Verve
If you’re a Verve member, here’s how to set up personal contributions:
1. Log into your member portal
2. Tap or click the top-left menu and select ‘Make a personal contribution’
3. Find the BPAY details
4. Transfer funds via BPay from your bank
To set up ongoing contributions, use BPAY details to set recurring payments via your banking app .
Navigating the super system can be a challenge and at times it feels like a rabbit hole of information. We’re big believers in using knowledge as power and as a big ol’ confidence boost - and your super benefits, too.