Nobody wants to have to pay more tax than is absolutely necessary, so it’s really important that you understand that there are tax implications for exceeding the limits or caps on contributions (personal and/or employer) into your super account.

Concessional (before-tax) super contributions

Concessional or before-tax contributions include employer super contributions (e.g. Superannuation Guarantee (SG)), salary sacrifice contributions, and self-employed contributions for which you claim a tax deduction.

Before-tax limit*	Contributions tax	Extra tax paid if above the limit
$25,000 pa for members of all ages	15% (30% if you earn $300,000 pa or more)	31.5%

• If you earn less than $300,000 pa, these contributions are taxed at 15% on the way into the Fund.
• From 1 July 2012, if you earn $300,000 pa or more (including concessional contributions to super, adjusted fringe benefits and some other items) your contributions will be taxed at 30%. If your income without super is less than $300,000 and concessional contributions raise it to over $300,000, the 30% tax rate only applies to the amount over $300,000.
• From 1 July 2012, if you earn under $37,000 pa and receive at least 10% of your income from employment or operating a business, you will effectively pay no tax on your SG contributions—the 15% tax will be refunded to your super account.

If you make contributions above the $25,000 annual limit, you will pay extra tax of 31.5%. Contributions above this limit will also count toward your after-tax limit.

Non-concessional (after-tax) super contributions

Non-concessional or after-tax contributions are generally made from your take-home pay on which you have already paid tax at your marginal tax rate.

This means no contributions tax applies when deposited into your super account or if you take a cash super benefit when you retire, as long as they are within the contributions limit.

However, if you contribute to superannuation over the limit, you will pay additional tax of 46.5%.

Your age	After-tax limit*	Contributions tax	Extra tax paid if above the limit
< 65	$150,000 pa or $450,000 averaged over 3 years	Nil	46.5%
65–74	$150,000 pa (You must meet a Work Test requiring you to work 40 hours in a 30-day consecutive period)	Nil	46.5%
75 +	You can no longer contribute to super	N/A	N/A

*Limit does not include the Government co-contribution.

For more details, download our Contributions: Superannuation fact sheet (PDF 225KB).

Investment earnings are taxed at a maximum of 15%.

It is often less than 15% because, at Australian Catholic Superannuation, we take advantage of the tax credits that apply to dividends received from Australian shares.

Your super will be divided into taxable and tax-free components. You will generally only have a tax-free component if you made after-tax contributions to your super.

When you take your super, there is no tax on the tax-free amount, but you will pay tax on the taxable component. The taxable amount depends on your age:

• Generally, no tax will be charged if you are aged 60 or more.
• If you are between age 55 and 60, there is generally no tax on the first $175,000 and the balance is generally taxed at 15% plus the Medicare levy.
• If you are under age 55, the whole taxable component will usually be taxed at 20% plus the Medicare levy.

A lump sum paid to your spouse, child under age 18, a person with whom you have an interdependent relationship (e.g. a relative you intend to live with on a permanent basis) or a financial dependant will generally be tax-free.

The taxable component of a lump sum paid to anyone else (eg non-dependent adult children) will generally be taxed at 15% plus the Medicare levy.

Anti-detriment death benefit payments

Australian Catholic Superannuation makes anti-detriment payments and pays this additional benefit automatically.

An anti-detriment death benefit payment, or ‘tax saving amount’, is the term for an increased lump sum amount, in addition to your super account balance, that is paid to your eligible beneficiaries in the event of your death.

The payment is meant to represent a refund of superannuation contributions tax you have paid during your lifetime.

This payment can only be made to a:

• spouse (including de-facto spouse or same-sex partner), or
• former spouse, or
• child (including adult child), at the time of death or payment.

The proceeds paid under the anti-detriment death benefit provisions will be subject to tax under the rules that apply to lump sum superannuation death benefits.

When considering any estate planning strategies, please note that potential anti-detriment death benefits payable to an eligible beneficiary may be reduced or eliminated in situations where a superannuation recontribution strategy is adopted. A recontribution strategy involves a super fund member who is over age 55 withdrawing benefits tax-free and then recontributing them back to a super as non-concessional (after-tax) contributions.

Contact us if you need more details about tax on death benefit payments.

Depending on your age, you may pay a higher rate of tax on any insured component of your benefit. Call us on 1300 658 776 if you need more information.

You do not have to provide us with your tax file number (TFN).

However, if you don’t provide it, you may pay more tax on your concessional contributions (e.g. employer contributions) and on any benefit payments you receive. We will also not be able to accept any non-concessional (i.e. after-tax) contributions on your behalf.

If you wish to provide us with your tax file number, simply login to your Members online account or download and complete a copy of our Tax file number nomination form (PDF 175KB).