skip to log on skip to main content
VoiceOver users please use the tab key when navigating expanded menus

Understanding super


Published 9 October 2018

One life, one super account.

Most, if not all, of us will work for more than one employer over the course of our careers. And if you go with your employer’s default super fund whenever you change jobs, you’ll end up with several super accounts - and that means several sets of account fees, which will eat into your super balance.

It makes sense to choose a single super account that can stay with you throughout your working life.

When you have just one super account, you’ll be able to:

  • reduce your costs, with only one set of fees
  • manage your investments more easily
  • keep track of how much money you have.

More super, less tax: concessional contributions

Salary sacrifice is when you make additional ‘before-tax’ or concessional contributions to your super. If your employer pays in extra super for you (over and above the Super Guarantee amount that they are required to contribute), that money will be taken from your pre-tax pay.

If you’re earning less than $250,000, this money is taxed at a maximum of 15 per cent rather than your marginal tax rate, so it can be a tax-effective way to invest in your future. If your income exceeds $250,000, the tax rate on concessional contributions is 30 per cent.

You should be aware that there is a concessional contributions cap (for the 2017-18 financial year) of $25,000 for people of all ages. If you have more than one super account, the cap applies to the total contributions to all your accounts.

If you make concessional contributions above this amount, they’ll be taxed at your marginal rate and you’ll also be required to pay an excess concessional contributions charge.

Non-concessional contributions

You can also boost your super by making payments to it from your after-tax money. These are known as non-concessional contributions.

If you earn $36,813 or less (for the 2017-2018 financial year) and make a personal non-concessional contribution, you may be eligible for a government co-contribution payment of up to $500 into your super. This maximum co-contribution payment reduces when your income exceeds $36,813, becoming zero once your income reaches $51,813.

As is the case for concessional contributions, there are caps for how much you can pay into your super from your after-tax money, and it’s important to know that contributions made to all of your funds and accounts (if you have more than one) are added together and counted towards the contributions caps.

If your total super balance at 30 June 2017 is $1.6 million or more, the cap is nil, but otherwise it's $100,000.

There is also a ‘bring-forward’ arrangement which allows you, if you’re under 65 during the ‘triggering’ year, to make non-concessional contributions of up to three times the annual non-concessional contributions cap in a single year.

For the 2017-18 financial year, to access the non-concessional bring-forward arrangement you must:

  • be under 65 years of age for one day during 2017 (the triggering year); and
  • have had a total super balance of less than $1.5 million at 30 June 2017.

The cap amount for years two or three of a bring-forward arrangement is nil for a financial year if your total super balance is more than or equal to the general transfer cap at the end of 30 June of the previous financial year.

If you’re between 65 and 74, to make a contribution you must have been gainfully employed for at least 40 hours over 30 consecutive days in that financial year.

If you make excess non-concessional contributions and don’t withdraw them, you’ll pay 47 per cent tax on the amount. If you withdraw the excess contributions and any earnings, those earnings will be taxed at your marginal rate (as part of your assessable income) and you’ll be entitled to a 15 per cent tax offset for the tax paid by the super fund.

Talk to us about superannuation

13 12 87

Mon-Fri 8am to 7pm (AEST) 

Super basics

Article

ANZ Smart Choice Super FAQs
 

See the top frequently asked questions for ANZ Smart Choice Super, from consolidating accounts to employer contributions.

Article

Take control of your super online
 

See our top five tips to maximising your ANZ Smart Choice Super account, from getting the ANZ App to reducing fees.


Article

How to get an extra $500 in your superannuation

You might be able to get a superannuation boost from the government. Find out if you’re eligible today.

OnePath Custodians Pty Limited (OnePath Custodians) ABN 12 008 508 496, AFSL 238346, RSE L0000673 is the trustee of the Retirement Portfolio Service (ABN 61 808 189 263, RSE R1000986) (Fund) and issuer of the interests in “ANZ Smart Choice Super”, a suite of products consisting of ANZ Smart Choice Super, ANZ Smart Choice Super for employers and their employees and ANZ Smart Choice Super for QBE Management Services Pty Ltd and their employees.

ANZ Smart Choice Super is issued by OnePath Custodians, and the ANZ Smart Choice Super and Pension product is distributed by Australia and New Zealand Banking Group Limited (ANZ) (ABN 11 005 357 522). ANZ is an authorised deposit taking institution (Bank) under the Banking Act 1959 (Cth). OnePath Custodians is the issuer of this product but is not a Bank. Except as described in the relevant Product Disclosure Statement, the obligations of OnePath Custodians are not deposits or liabilities of ANZ or its related group companies. None of them stands behind or guarantees the issuer or the capital or performance of any investment. Such investment is subject to investment risk, including possible repayment delays and loss of income and principal invested. Returns can go up and down. Past performance is not indicative of future performance.

This information is subject to change. You should read the relevant ANZ Financial Services Guide (FSG), PDS, product and other updates (for open and closed products) available at ANZ.com.au/super and consider whether the product is right for you before making a decision to acquire, or to continue to hold the product. Updated information will be available free of charge by calling Customer Services on 13 12 87.

Taxation law is complex and this information has been prepared as a guide only and does not represent tax advice. Please see your tax adviser for independent taxation advice.

The information on insurance cover is a summary only of the terms and conditions applying to the insurance cover. To the extent there is any inconsistency with the terms of the insurance cover provided by the insurer, the terms of the insurance policy will prevail.

The information provided is of a general nature and does not take into account your personal needs, financial circumstances or objectives. Before acting on this information, you should consider the appropriateness of the information, having regard to your needs, financial circumstances or objectives. The case studies used in this article are hypothetical and are not meant to illustrate the circumstances of any particular individual. Opinions expressed in this document are those of the authors only.

ANZ does not represent or guarantee that access to the ANZ Internet Banking or the ANZ App will be uninterrupted. Temporary service disruptions may occur. ANZ recommends that you read the ANZ App Terms and Conditions available at anz.com and consider if this service is appropriate to you prior to making a decision to acquire or use the ANZ App.

In addition to their salary, ANZ staff members may receive monetary or non-monetary benefits depending on the product they are selling or providing advice on.

Apple, the Apple logo, iPhone and iPad are trademarks of Apple Inc., registered in the US and other countries. App Store is a service mark of Apple Inc.

You need Adobe Reader to view PDF files. You can download Adobe Reader free of charge.