Drop money into your super and the ripple effect begins
Scroll to discoverNo one works harder for your money than you
And nothing works harder for your hard-earned money than compound earnings over the long term. Dropping additional contributions into your super is like throwing a stone in a pond — the earnings paid on earnings can cause a ripple effect that gets your balance expanding over time. Starting earlier, rather than later, can help your investment options work harder for you and really expand your balance. But anytime is a good time to get the power of compounding to work for you.
Plus, you may be able to reduce your taxable income, which means you’ll pay less tax.
Investment options
Your super is invested in your chosen investment options (or the Lifecycle Investment Strategy if you haven’t made a choice). It generates earnings, which is similar to interest in a bank account, but unlike bank interest, earnings in your super can be positive or negative, and it’s common to see fluctuations in returns. Before making additional contributions, we recommend you consider how your super is invested. Read the Super Savings Investment Guide for more information.
What are my options to add more to my super
Learn more about each option using the tabs below
Salary sacrifice contributions are contributions setup through an agreement with your employer. Money is paid into your super before you pay tax, which may reduce your taxable income.
Salary sacrifice
Voluntary contributions are payments made by you to grow your super balance. You can make regular or one-off payments and you may be able to claim a tax deduction.
Voluntary contributionsSalary sacrifice pre-tax contributions
Salary sacrifice contributions are contributions setup through an agreement with your employer. Money is paid into your super before you pay tax, which may reduce your taxable income.
Setting aside some of your wage or salary to pay into your super before you pay tax reduces your taxable income. That means you can make a bigger splash with your super contributions and potentially pay less tax because you’re paying only 15% in most cases on the contributions you make, rather than your marginal tax rate (which can be as high as 45% plus the Medicare levy). It’s important to note that the example above does not take into account the tax that’s deducted from your contributions.
This is called ‘salary sacrifice’. The savings in your super will benefit from compound earnings ‘rippling out’ over the years to build your balance. Make sure you consider the contribution caps
How do I start salary sacrificing?
Ask your employer to have extra contributions dropped into your Australian Retirement Trust account via salary sacrifice. They can usually do this for you. If you want to salary sacrifice, use this email template to let your employer know or talk to them about how you can start.
1. Members earning over $250,000 p.a. (including concessional super contributions) will be subject to an additional 15 per cent tax on the contributions above this limit. Refer to ato.gov.au for more information.
Voluntary after-tax contributions
Voluntary contributions are payments made by you to grow your super balance. You can make regular or one-off payments and you may be able to claim a tax deduction.
Every time you drop a little money into your super, it goes to work and creates a ripple effect over the long term. Even small drops can go far in the end. That means making more frequent contributions may be better than waiting to make one lump-sum contribution at the end of the financial year.
If you add to your super from your after-tax income, you can grow your super balance and you may be able to take advantage of new rules that may allow these contributions to be deducted from your taxable income. When you claim a deduction, 15% tax is normally deducted from your contribution, which may be lower than your marginal tax rate. It’s important to note the example above doesn’t take into account the tax that’s deducted from your contributions when you claim a deduction.
When you’re thinking about claiming a tax deduction for after-tax contributions, some eligibility conditions and criteria apply.
How do I drop more after tax money in?
Get your unique BPAY reference number. (Allow at least three business days for payments.)
Complete and return a Direct Debit Request form.
Payroll Deductions: ask your employer to make regular payments from your after-tax pay.
BPAY® Registered to BPAY Pty Ltd ABN 69 079 137 518
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