Getting money into super
2.7 Member contributions
Member contributions include any contribution made by or on behalf of the member but does not include employer contributions (eg Super Guarantee or salary sacrifice).
A member can only make personal contributions to a superannuation fund if the fund is allowed to accept contributions from that member. This depends on the member's age, whether the member satisfied the work test (if required) and whether the member provides their tax file number.
Types of Member Contributions
|Type of member contribution||Description|
|Child contributions||Contributions made for a member who is under 18 by someone other than the member or their employer.|
|Excess CGT contributions||Contributions exceeding your capital gains tax (CGT) cap amount|
|Excess concessional||Contributions in excess of the concessional contributions cap which have not been released from your superannuation fund|
|Government Co-contributions||Up to a maximum amount of $500|
|Member deductible contributions||Other personal contributions which you have not claimed, or were not allowed to claim as an income tax deduction|
|Non-concessional contributions||Contributions you make from your after-tax income|
|Overseas transfers||Most transfers from foreign super funds (including New Zealand Kiwisaver contributions).|
|Recontribution amounts||Any benefits from a retirement account you withdraw and re-contribute to superannuation and for which you have not claimed, or were not allowed to claim an income tax deduction|
|Spouse contributions||Contributions your spouse makes to your super fund|
|Exclusions - Contributions that do not count towards your non-concessional contributions cap:|
|CGT contributions||Contributions that a member elects to count towards the capital gains tax (CGT) cap lifetime limit|
|Downsizer contributions||Proceeds from the sale of a primary residence|
|Personal injury||Personal injury payments, also called structured settlement contributions|
Deductions for personal contributions
To qualify for a tax deduction for personal superannuation contributions, the following conditions (in subdivision 290-C of the ITAA 1997) must be satisfied:
- Complying superannuation fund condition - the contribution must be made to a complying superannuation fund or an RSA for the purpose of providing superannuation benefits for the member.
- Age-related conditions - the member under the age of 18 at the end of the income year in which they have earned income from carrying on a business or from employment during the year, and in any other case, a contribution to be made by the 28th day after the month in which a member turns 75.
- Notice of intent to deduct conditions - a member must give notice to the trustee of the fund or the RSA provider a valid notice of the intention to claim the deduction, and the member receives an acknowledgement of the notice.
- Deduction limited by the amount specified in the notice - a member cannot deduct more for the contribution (or part of the contribution) than the amount stated in the notice.
Once made, a notice cannot be revoked or withdrawn, but it can be varied to reduce (including to nil) the amount the member wishes to deduct. A variation is only effective if the person is still a member of the fund, the trustee still holds the contribution, and the trustee has not commenced to pay a superannuation income stream based on the contribution.
This technical resource is intended for the use of financial advisers only. It is current as at the date of publication but may be subject to change. This publication has been prepared without taking into account a potential investor's objectives, financial situation, needs or objectives. Before making a recommendation based on this material, you should consider its appropriateness based on the client's objectives, financial situation and needs. Rainmaker Group is not a registered tax agent under the Tax Agent Services Act 2009. Your client should refer to a registered tax agent before relying on information published herein that may impact their tax obligations, liabilities or entitlements.
Last modified: Tuesday, August 17, 2021