After-tax contributions

After-tax contributions, also known as ‘non-concessional contributions’, is money added from your take-home pay or after-tax salary.

Things you should know

• Contribution caps: There’s a cap on how much you can add to your super. This is set by the Australian Tax Office (ATO) and changes periodically. You can find more information about contribution caps at Tax and Your Super.

Timing of contributions

We recommend that you BPAY or electronically transfer your money before 21 June to allow time for bank transfers and processing into your account prior to 30 June. This seeks to ensure your contributions are reported to the ATO and allocated to your account in the same tax year (i.e. prior to 1 July). 

If you’re a contributing customer of ADF Super or PSSap, there are four ways you can make after-tax payments:

• BPAY

  BPAY is good for one-off payments, also known as lump sums, or adding some money every now and then.

  To make a BPAY payment, log into CSC Navigator, click on ‘My account’ and then select ‘Contributions’. Your BPAY biller code and Customer Reference Number (CRN) will be listed on screen. Once you’ve obtained your CRN, make a BPAY payment by logging into your personal online banking account. 

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  Note: BPAY can't be used for Downsizer contributions

  How to make a downsizer contribution

• Arrangement with your employer

  You can set up regular automatic contributions from your after-tax salary to your super through your employer’s payroll department.

• Micro contributions

  Options like cashback and round ups can turn your spare change into super contributions, boosting your retirement savings with little impact on your everyday spending.

  1. Cashback

  Earn cash back into your super when you shop online. When you purchase from partner retailers, a commission is generated, resulting in cash being deposited directly into your super. For example, if you buy a new top for $50 with a 5% cashback offer, $2.50 will be added to your super.

  2. Round ups

  Automatically round your spending to the nearest dollar and have the difference deposited into your super. Your loose change can lead to super returns for your future. For example, if you buy a coffee for $4.50, rounding up to $5 means $0.50 will be added to your super.

  Boost Your Super can help you make free and easy contributions to your super while you shop, offering cashback with over 750 partner stores and round ups.

  Learn about our partnership with Boost Your Super

• Cheque or money order

  Send your payment to your super fund using our address details on the Contact us page.

  Please remember to also provide your full name and membership number.

Claiming a tax deduction

If you’ve made an after-tax contribution to your accumulation account, you may be able to claim a tax deduction on your next income tax return.

Eligible deductions

You can claim a tax deduction for after-tax contributions made into your PSSap or ADF Super account. These contributions must still be in your account, meaning you haven’t rolled them out or used them to open a retirement income account.

Where you have chosen to rollover or withdraw a part of your super account, special rules apply and a valid notice of intent cannot be given for the entire contribution.

Non-eligible deductions

You can’t claim a tax deduction for:

• super you transfer from one fund to another (including an overseas retirement fund), or
• super contributions you transfer to start a retirement income account.

How to apply for a tax deduction

Once you make an after-tax contribution, you need to send us a Notice of Intent (NOI) form to let us know that you will claim a tax deduction. You have until the date you submit your tax return to send in your NOI, or 12 months from the end of the financial year that the contributions were received, whichever comes first.

Please complete the Notice of Intent (NOI) form to let us know that you will claim a tax deduction.

Download the Notice of Intent form

Once we’ve received your NOI, we’ll process the request and deduct 15% contributions tax on the amount listed in your NOI. This will be listed as ‘Income Tax Expense’ on your annual statement. The contribution tax is deducted on the effective date when your NOI request is processed.

Once you hear back from us that your NOI was received and processed, we’ll provide you with an ‘Acknowledgement of Notice of Intent to claim a tax deduction’ You can then claim a tax deduction on your income tax return.

Please email your completed form to:

• ADF Super: formsandapplications@adfsuper.gov.au 
• PSSap: formsandapplications@pssap.com.au

Things to consider:

If you’re planning to split all or part of your contributions with your spouse, but also want to claim a tax deduction for them, let us know that you intend to claim a deduction before you go ahead with the split.

Before-tax contributions

Money that you add to your super before-tax, also known as salary sacrifice payments or ‘concessional contributions’, are taxed at 15% when they enter your account. This means you could pay less tax on salary sacrifice contributions than you would pay if you took that same amount as ordinary income.

How much you add to your super is up to you, so that you can make sure it’s affordable and within your budget.

Things you should know

• Tax: The higher your income, the more benefit you get. The benefits for those earning less than $37,000 per year are limited. If your personal tax rate is greater than 15%, the money you salary sacrifice may attract less tax than it would in your take-home pay.
• Contribution caps: There’s a cap on how much you can add to your super before tax. This is set by the ATO and changes periodically. You can find out more on the ATO website. Your employer may also have a cap on the amount you are allowed to salary sacrifice.
• Less take-home pay: Before-tax contributions will mean you take home less pay each fortnight. You need to weigh up the costs and benefits of salary sacrificing – taking into account your objectives, financial situation and needs – before making any decisions.

How to salary sacrifice

Confirm with your employer that they allow you to salary sacrifice to super (i.e. add money to your super before tax is applied). This may be handled via your payroll department or a third party arrangement.

If salary sacrificing is an option, you can ask your employer or relevant third party to deduct your salary sacrifice amount from your regular pay. Once it’s set up, your money will automatically be deducted from your salary and deposited into your super account until you ask them to stop.

We’ve created tools in online services to help you estimate how much you can salary sacrifice. To use these tools, log into CSC Navigator.

You can set up regular automatic contributions from your before-tax salary to your super through your employer’s payroll department.

Spouse contributions

Your spouse may be able to add extra money to your super on your behalf. These payments are called ‘eligible spouse contributions’ and are considered ‘non-concessional contributions’.

A spouse is someone who is:

• legally married to you

• in a bona fide domestic relationship with you (includes same-sex partners).

Your spouse doesn’t have to be a member of your super fund to add money to your account, but you must be a contributing customer. 

Your spouse can add money via BPAY through CSC Navigator or by completing a Voluntary Contributions form.

If your spouse wants to add money via BPAY, you will need to log into CSC Navigator, click on ‘contributions’ and follow the prompts to generate a BPAY and Customer Reference Number (CRN). Once you have a CRN, your spouse can make a BPAY payment through their bank or financial institution.