A Quick Guide on When You Can Contribute

Generally, the Fund can only accept contributions on your behalf if you are under age 65. However, where you have been gainfully employed at least on a part-time basis, or where required to comply with the Superannuation Guarantee, contributions by an employer will be accepted up to age 70. Employer contributions are accepted after age 70 only if the employer is required to make contributions under an award or industrial agreement.

Where you have been gainfully employed at least on a part-time basis you may make additional personal contributions up to age 75 and spouse contributions can be accepted on your behalf up to age 70. You are considered gainfully employed on a part-time basis if during the financial year you worked at least 40 hours in a period of not more than 30 consecutive days. A person who has fulfilled these eligibility criteria may make a contribution at any subsequent time during the financial year.

The following table details who can make contributions to your superannuation account.

Your Age

Types of contributions that can be accepted

Under 65

·          All employer contributions

·          All personal contributions

·          Eligible spouse contributions

65-69

·          Personal contributions and voluntary employer contributions# If you have been gainfully employed for at least 40 hours in a period of no more than 30 consecutive days in the financial year.

·          Eligible spouse contributions if you have been gainfully employed for at least 40 hours in a period of no more than 30 consecutive days in the financial year.

·          Mandated employer contributions~

70-74

·          Personal contributions for which you will not be able to claim a tax deduction if you have been gainfully employed for at least 40 hours in a period of no more than 30 consecutive days in the financial year.

·          Mandated employer contributions~

75 plus

·          Mandated employer contributions~

# Voluntary employer contributions include salary sacrifice and discretionary superannuation contributions.

~ Mandated employer contributions are contributions an employer is required to make by law. These include SG contributions under a certified agreement or industrial award.

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Employer Contributions

Government legislation requires your employer to pay a minimum level of compulsory Superannuation Guarantee Contributions (SG) for you.

This minimum level, as a percentage of your ordinary time earnings is currently 9% where earnings exceed $450 per month. If you are covered by an Award or Employment Agreement that specifies an amount that is more than the SG amount, your employer must pay the higher amount on your behalf.

If you are a Minister of Religion or a charitable worker, whilst the minimum legal requirement is currently 9% of your taxable income, best practice is contribution based on the total (grossed up) package value.

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Salary Sacrifice

An arrangement can be made between you and your employer to have extra contributions paid to your super account before you pay tax.

This means you only pay income tax on your gross wage after your extra contribution has been sent to your super account (contributions tax still applies but typically at a lower rate). This is commonly referred to as Salary Sacrifice. Your taxable income is reduced, and therefore you pay less income tax. These new savings may be made as additional contributions into superannuation for your retirement. This option may not be available to you or may not suit your needs; talk to your payroll officer or call Australian Christian Services Financial Planning.

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Personal Contributions

You may wish to consider making personal or extra contributions to your superannuation.

Recent legislative changes have made personal contributions even more attractive for those members who earn below $58,980 per year. The Federal Government matches each $1 of personal contributions an eligible person makes to their superannuation account with a co-contribution up to $1.50. To be entitled to the government co-contribution you must:

Have made personal contributions to a complying superannuation fund (excludes salary sacrifice or tax deductible contributions) in that financial year;
Have lodged your income tax return for the financial year;
Be on an income (assessable income and reportable fringe benefits) that is less than $58,980;
Not be a temporary resident;
Be less than 71 years old at the end of the financial year;
10% or more of your total income for the income year is from employment and/or from carrying on a business.

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Government Co-Contributions

How much does the Government Co-Contribute?

The amount of co-contribution matched by the Government depends on your income and the personal contributions that you make into the superannuation fund during the financial year. The government has set a maximum co-contribution limit of $1,500 for people with incomes under $28,980. This maximum amount reduces by 5 cents per dollar up to an income of $58,980 when the co-contribution becomes nil.

Government co-contributions are not taxable income of the superannuation plan.

As the eligibility for the Government co-contribution depends on personal circumstances, we recommend you contact your tax adviser, financial adviser or the Australian Taxation Office for further information.

When does the Co-Contribution get paid?

The Government works out your co-contribution eligibility by obtaining records from all superannuation funds and your income tax return.

Once calculated, if you have been deemed eligible, the co-contribution will be paid directly into your superannuation fund account. This will occur after the end of the financial year.

To make personal contributions on-line via EFT, use member access via the web page at www.acsuper.com.au or contact your payroll officer for payroll deductions. Alternatively, payments can be made directly to ACSuper. Just provide your membership details and a cheque payable to Australian Christian Superannuation.

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