after-tax contributions

After-tax or ‘non-concessional’ contributions are extra money you put into your super from savings or income you’ve already paid tax on.

To be eligible to make after-tax contributions, your total super balance must be less than the transfer balance cap ($1.7 million for 21/22 FY) at the end of June. You must also ensure you have provided us with your tax file number (TFN).

After-tax contributions are included in the non-concessional (after-tax) contributions cap. This cap is currently $110,000 pa, but you may be able to bring-forward up to three years’ worth of after-tax super contributions, depending on your super balance and age. 

Boost your super with the Government Co-contribution  

If you earn under $56,112 and make a personal (after-tax) contribution to your super, you may be eligible to receive a government co-contribution.  

What is the Government Co-contribution?  

The Government Co-contribution is an initiative where the government contributes up to 50 cents for every $1 for every after-tax contribution to your super.  

How much will I get?  

The amount you receive depends on your total income and how much money you contribute. The maximum amount the government will contribute is $500 p.a. The amount starts reducing once your assessable income exceeds $41,112 and reduces to zero once your income reaches $56,112.

Am I eligible?  

To be eligible, you need to: 

  • make one of more after-tax contributions to your super account 
  • have assessable income determined by the (ATO) of less than $56,112 for the 2021/22 financial year 
  • have 10% or more of your total income from eligible employment, running a business or a combination of both 
  • be less than 71 years of age at the end of the financial year 
  • be a permanent resident of Australia 
  • lodge an income tax return for the relevant financial year 
  • have not exceeded your non-concessional contributions cap in the financial year. 


The following contributions are not eligible to receive the Government Co-contribution: 

  • Super Guarantee (compulsory super paid by your employer contributions) 
  • salary sacrifice contributions 
  • contributions for which a tax deduction is claimed 
  • spouse contributions.

You can use the ATO’s super co-contribution calculator to estimate your entitlement and see if you are eligible.  


When will I get my co-contribution? 

If you’re eligible, the government will pay the co-contribution directly into your super account after you have lodged your tax return. 


Things to consider  

To be eligible for the co-contribution, your total superannuation balance must be less than the transfer balance cap ($1.7 million for 21/22 FY) at the end of June. You must also ensure you have provided us with your tax file number (TFN).  

Provide your TFN if you haven't already.


How do I make a personal contribution?   

  1. Log into Member Online
  2. Got to ‘Payment options’ to view your personal details for BPAY or EFT
  3. Make a contribution into your account.  


Co-contribution examples

Total income (p.a.)Maximum co-contribution availableContribution needed to receive
the maximum entitlement
Up to $41,112$500$1,000
$42,112$400$800
$48,613$250$500
$53,113$100$200
$56,112 and above$0$0


downsizing contributions

From 1 July 2018, the Australian Government introduced the Downsizing Contributions measure, which means you can contribute some proceeds of the sale of your home into superannuation.  

How downsizing works

Downsizing allows you to make an after-tax contribution of up to $300,000 into superannuation from the sale of your home which was your main residence. Couples can both contribute this amount towards super up to a maximum of $300,000 each.

This amount will not count towards your non-concessional (after-tax) contributions cap but will count towards your total super balance when it is re-calculated on 30 June at the end of the financial year. It will also count towards your transfer balance cap that is currently $1.7 million (this cap applies when you move your super into the retirement phase). You can only make one downsizing contribution from the sale of your main residential home.

Eligibility

To qualify for downsizing, you must meet all of the following criteria:

  • be at least 65 years old
  • owned your home for more than 10 years
  • your home is in Australia and is not a caravan, houseboat or other mobile home
  • the proceeds from the sale are either exempt or partially exempt from capital gains tax (CGT) under the main residence exemption
  • the downsizer contribution form found on ato.gov.au accompanies the contribution when made to your super fund
  • you make your contribution within 90 days of receiving the proceeds of the sale of your home
  • you have not previously made a downsizing contribution to your super from another home. You can only access the downsizer scheme once.

How to contribute

You will need to complete the downsizer contribution form. Please provide it to us prior to or when making your contribution. By submitting this form, you are confirming that you have met all the eligibility requirements.

The total amount of the downsizer contribution from the sale of your home can be up to a maximum of $300,000 and it must be made within 90 days of receiving the proceeds of the sale.

Important

Before taking advantage of the Downsizing provisions you should check the eligibility requirements and you may also wish to seek professional advice before making a decision.

Read more information.

WE're here to help

If you have any questions, email us 24/7 at hello@activesuper.com.au, use the webchat window below or call us on 1300 547 873 weekdays between 8.30am and 5.00pm.