What can I contribute to my MilitarySuper Ancillary benefit?

Ancillary contributions include a range of voluntary personal contributions, additional employer super obligations (such as Super Guarantee (SG) top-ups), Government contributions and transfers from other super funds.

• Salary Sacrifice

  Salary sacrifice contributions are voluntary contributions paid from your pre-tax salary. Even though they’re voluntary contributions paid from your own salary, they are classed as employer contributions. However, they don’t count towards the minimum amount Defence is required to pay into your super on your behalf. When we receive your salary sacrifice contributions, we’ll deduct tax at a concessional rate of 15% and report the contributions against your concessional contributions cap (see Contribution limits below). Salary sacrifice is an arrangement between yourself and Defence, so you’ll need to contact them to set it up.

• Additional personal contributions

  Additional personal contributions are voluntary contributions paid from your after-tax salary. As you have already paid tax on these amounts, we won’t apply tax when they’re received. These contributions count towards your non-concessional contributions cap.

  You can arrange for Defence to pay additional personal contributions on your behalf, from your after-tax salary, or you can pay them yourself directly to MilitarySuper. To make a contribution yourself, you’ll need to enclose your cheque, money order or make your EFT payment after completing the Additional Payment Personal Contributions - Deposit form.

• Spouse contributions

  Spouse contributions are contributions you can make on behalf of your spouse. Your spouse will have a MilitarySuper interest established on their behalf, and their contributions will be kept in a separate Ancillary account to yours. If you make spouse contributions, the benefit will belong to your spouse and will be payable to them as a lump sum—you’ll have no right to the benefit, even if they cease to be your spouse. Spouse contributions are paid from your after-tax salary, so we won’t apply tax when the contributions are received.

  Your spouse must be a person who you are in a marital or couple relationship with to be eligible for spouse contributions. A marital or couple relationship exists if you’ve been living together as husband, wife, spouse or partner on a permanent and bona fide domestic basis for a continuous period of at least three years. If less than three years, we’ll need to consider evidence and determine if spouse contributions can be received.

  Because these contributions belong to your spouse, only they can choose an investment option for them. Spouse contributions will only count towards your spouse’s non-concessional contributions cap and not your own. Your spouse will need to meet a condition of release to be eligible to claim their spouse contributions. For more information, visit ato.gov.au.

• Transfer amounts

  These are transfers of some or all of your existing super benefits from another fund. While you’re a contributing DFRDB or MilitarySuper member, you can transfer super from the following:

  • other regulated super funds;
  • approved deposit funds;
  • retirement savings accounts; and
  • the ATO.

  ATO-held super includes lost or unclaimed super and Government contributions such as co-contributions, low income super contributions (LISC) and low income super tax offsets (LISTO).

  If tax has been applied to your transfer amount, we won’t deduct any further tax. However, any previously untaxed portion of your transfer will be taxed at 15% on receipt. You can arrange a transfer in a number of ways:

  • Transferring your funds into MilitarySuper by logging into your myGov account and using the ATO online service. Make sure your account is linked to ato.gov.au.
  • Contacting your current fund to request a rollout to MilitarySuper. You’ll need to provide them with the following information about MilitarySuper in addition to your service number or PMKeys number:

  • Scheme: Military Superannuation & Benefits Scheme (MilitarySuper)
  • USI: 50925523120001
  • ABN: 50 925 523 120

  Transfers from self-managed super funds must be paid by cheque.

  Once your transfer has been received and credited to your MilitarySuper Ancillary benefit, we’ll send you written confirmation of the transaction.

• Government contributions

  In certain circumstances, the Government may make additional contributions to your super. You don’t need to apply for these contributions. If you’re eligible, and we have your tax file number, they’ll be paid into your Ancillary benefit automatically. There are three types of government contributions that may be paid into your MilitarySuper Ancillary benefit:

  Super co-contributions. These are payable to low- or middle-income earners (the thresholds change each financial year) who make personal after-tax contributions to their super. The amount of government co-contribution you receive will depend on your income and the amount you contribute, and is subject to an annual cap.

  The LISTO is payable to individuals with an adjusted taxable income below the threshold set by the ATO. If eligible, you’ll receive up to 15% of the total concessional (before-tax) super contributions that you make in a financial year, subject to an annual cap.

  The low-income super contribution was a similar scheme to LISTO, but ceased from 1 July 2017 when LISTO was established. For more information about Government contributions, including the current income thresholds and caps for these payments, visit ato.gov.au.

• Super Guarantee

  The Super Guarantee (SG) ensures a minimum level of employer sponsored superannuation contributions for all Australian employees.

  Your productivity contributions and notional employer benefit are based on your super salary.

  In most cases, these will exceed the minimum requirements of SG. However, you may receive allowances during your service that aren’t recognised as part of your super salary. If your employer hasn’t paid enough to meet the SG requirements, they will make additional contributions based on the difference between your super salary and your Ordinary Time Earnings (OTE). These top-up payments will be payable quarterly, and your eligibility may vary from one quarter to another