Document Text Contents
Page 1
1
Personal Contributions Guide
Personal
Contributions Guide
Options for contributing to your super
Issued 1 July 2019
Page 2
2
Contents
03 Contributions
04 Contribution categories
06 Employer contributions
07 Queensland Government employer contributions
08 Voluntary contributions
09 Benefits of salary sacrifice
09 Claiming a tax deduction for personal contributions
11 Super and your spouse
12 Contributions from the Australian Government
13 Other information
Page 8
8
The contributions you choose to make
Voluntary contributions are a great way to give your super a boost. All the contributions you make to your super, big or small, have
the potential to grow over the long term – meaning more money for your retirement.
And the earlier you start, the better, as you’ll benefit from the effects of compound interest. Put simply, compounding is where
your investment earns interest (earnings) on interest. The graph below shows how this generally works.
For example, by contributing just $20 per week, after 30 years, you could have over $85,000 – and only about $30,000 came from
your own pocket!1 That’s more than $50,000 of earnings just from compound interest. As more years pass, an increasingly larger
proportion of the final amount is made up of earnings.
How compounding can maximise your investment1
Voluntary contributions
$0k
$25k
$50k
$75k
Sa
vi
ng
s
Years
5 10 15 20 25 30
Savings Earnings
Although QSuper’s Accumulation account is unit-based, the same principle of compounding helps your super grow. Contributing
a little extra now could make a big difference to your future lifestyle.
Note that any voluntary contributions are made on top of your standard member contributions, so they will not attract higher
employer contributions.
How to make voluntary contributions
There are a few different options for how you can make voluntary contributions:
1. Through your employer: If you work for the Queensland Government, you can make voluntary contributions direct from your
pay. You just need to fill out a Start or Change Regular Contributions to Your Super form and give it to your payroll office, or contact
your salary sacrifice provider if applicable. Talk to your employer directly about setting this up if you do not work for a Queensland
Government employer.
2. Complete a Deposit form: You can download and complete this form either from our website or call us to request a copy.
Include a cheque or money order for the amount you want to deposit.
3. Via BPAY®: Making voluntary contributions via BPAY® is easy. Just use the individual BPAY details listed in Member Online or
on your annual statement. If you can’t find the BPAY details, call us and we can help. The minimum contribution we can accept
through BPAY is $10. We can accept the contribution once your bank transfers your funds to QSuper.
4. Visit a Member Centre: You can make contributions in person with cash (a maximum deposit amount of $1,000 applies)
or by EFTPOS (any daily transaction limits set by your bank will apply) at one of our Member Centres.
Claiming a tax deduction
You may be able to claim a tax deduction for personal (after-tax) contributions, regardless of your employment status up to your
concessional cap. For more information about claiming a tax deduction on your super, including eligible contribution types, please
read the Notice of Intent to Claim or Vary a Deduction for Personal Super Contributions form available at qsuper.qld.gov.au/forms
®Registered to BPAY Pty Ltd ABN 69 079 137 518.
1 These figures are illustrative only and were calculated using the MoneySmart calculator www.moneysmart.gov.au (accessed 9 May 2019). Assumptions: 1. The calculation assumes savings of $20 per
week for a time period of 30 years. 2. The calculation assumes the interest compounds monthly. 3. The interest rate assumed is 6% p.a. and is net of fees and taxes. 4. The calculation assumes that earnings
are reinvested and fully credited at the end of each month. 5. The information should not be used as a guide to future performance of any investment. 6. Investment returns can be positive or negative
and this does not guarantee a future outcome. 7. The total saved does not take inflation into account. 8. Check with your chosen savings product provider in regard to actual interest calculations. 9. The
calculation provides an estimate of the future value of savings, which could vary significantly over time if any change is made to these assumptions. 10. These figures are provided only to demonstrate the
principle of compounding. They are not intended to represent projected returns in a QSuper Accumulation account.
Page 9
Personal Contributions Guide
9
Salary sacrificing is when you contribute a portion of your
salary to your super before you pay any tax on it, which lowers
the amount of salary you pay income tax on.
Salary sacrifice contributions are taxed at a maximum of 15%
by your super fund, which may be less than the tax you pay
on income. For many people, salary sacrifice can be beneficial
because you can effectively reallocate what would otherwise
be paid in tax to your super account. Remember to stay under
your concessional contributions cap.
This can be a tax-effective way of making contributions,
as when you salary sacrifice, you pay 15% tax on your
contributions instead of your marginal tax rate (which could be
up to 45%).1
If you are already making contributions you could contribute
your tax savings into your super. You could potentially boost
your super without necessarily decreasing your take-home pay.
If you are on a lower income, salary sacrifice might not be right
for you, as your income tax rate may be lower or only marginally
higher than the superannuation contributions tax rate.
To understand whether you could benefit from salary
sacrificing your super, try the calculators on our website at
qsuper.qld.gov.au/calculators-and-forms
Benefits of salary sacrifice
Salary sacrifice case study
Jane works for the Queensland Government. She
earns $72,500 per year, and makes standard after-tax
contributions to her super of $3,625 per year.
If she makes this contribution to her super as a before-tax
salary sacrifice contribution, her income tax will decrease
from $16,560 per year to $15,309 per year.
That means her take-home pay increases from
$52,315 to $53,566.2 Jane could then contribute the
difference to her super, meaning she is boosting her
super without necessarily affecting her take-home pay.
1 Plus applicable levies. 2 This case study is for illustrative purposes only to show how salary sacrificing works, and does not take into account your personal tax liability. The calculation is based on tax rates
for the 2019-20 financial year and it is assumed for the purpose of the case study that all terms and conditions have been met. Additionally, figures may be rounded up for ease of understanding. 3 For more
information on the work test and the work test exemption, see page 3 of this guide.
Claiming a tax deduction
for personal contributions
If you are under 75 years of age, you may be able to claim a tax
deduction for personal contributions, regardless of whether
you are self-employed or not.
Some restrictions and conditions apply, including that if you
are between age 65-74 you need to meet the work test or
work test exemption to be eligible to make a contribution and
therefore claim a deduction.
Note that the personal contributions you choose to claim a tax
deduction for are considered concessional contributions, so
they count towards your concessional contributions cap.
Before you make these types of contributions, it’s a good idea
to get advice from your accountant, financial adviser, or the
ATO to see whether it is the best strategy for you.
Claiming tax deductions on personal
contributions
If you want to claim a tax deduction on personal contributions
to your super, 15% contributions tax will be deducted from
the amount you claim. The amount you claim will also count
towards the concessional contributions cap.
To make a tax deduction claim, you need to be a member of
QSuper and make a personal contribution to your QSuper
Accumulation account in the financial year you want to claim
the deduction (we must have received these contributions
before 30 June of that financial year).
There are some age restrictions on claiming a tax deduction for
personal contributions:
• If you are age 75 or older, you cannot claim a deduction for
contributions that were made more than 28 days after the
month you turned 75.
• If you are under age 18 at the end of the financial year in which
you make the contribution, you must have earned income as
an employee or a business operator during the year.
Page 15
Personal Contributions Guide
15
Page 16
16
Phone
1300 360 750 (+617 3239 1004 if overseas)
Monday to Thursday: 8.30am – 5.00pm (AEST)
Friday: 9.00am – 5.00pm (AEST)
Email
[email protected]
Postal address
GPO Box 200, Brisbane QLD 4001
Fax
1300 241 602 (+617 3239 1111 if overseas)
Member Centres
70 Eagle Street, Brisbane
63 George Street, Brisbane
Sunshine Coast University Hospital, Ground Floor,
Main Hospital Building, 6 Doherty Street, Birtinya
qsuper.qld.gov.au
This information is provided by QInvest Limited (ABN 35 063 511 580, AFSL 238274), which is ultimately owned by the QSuper Board (ABN 32 125 059 006,
AFSL 489650) as trustee for QSuper (ABN 60 905 115 063). QInvest is a separate legal entity responsible for the financial services it provides. All QSuper
products are issued by the QSuper Board as trustee for QSuper. This is general information only, so it does not take into account your personal objectives,
financial situation, or needs. You should consider whether QSuper is right for you, by downloading and reading the PDS from qsuper.qld.gov.au or calling us on
1300 360 750 to request a copy.
© QSuper Board 2019. CNC-2825. IB03. 07/19.
1
Personal Contributions Guide
Personal
Contributions Guide
Options for contributing to your super
Issued 1 July 2019
Page 2
2
Contents
03 Contributions
04 Contribution categories
06 Employer contributions
07 Queensland Government employer contributions
08 Voluntary contributions
09 Benefits of salary sacrifice
09 Claiming a tax deduction for personal contributions
11 Super and your spouse
12 Contributions from the Australian Government
13 Other information
Page 8
8
The contributions you choose to make
Voluntary contributions are a great way to give your super a boost. All the contributions you make to your super, big or small, have
the potential to grow over the long term – meaning more money for your retirement.
And the earlier you start, the better, as you’ll benefit from the effects of compound interest. Put simply, compounding is where
your investment earns interest (earnings) on interest. The graph below shows how this generally works.
For example, by contributing just $20 per week, after 30 years, you could have over $85,000 – and only about $30,000 came from
your own pocket!1 That’s more than $50,000 of earnings just from compound interest. As more years pass, an increasingly larger
proportion of the final amount is made up of earnings.
How compounding can maximise your investment1
Voluntary contributions
$0k
$25k
$50k
$75k
Sa
vi
ng
s
Years
5 10 15 20 25 30
Savings Earnings
Although QSuper’s Accumulation account is unit-based, the same principle of compounding helps your super grow. Contributing
a little extra now could make a big difference to your future lifestyle.
Note that any voluntary contributions are made on top of your standard member contributions, so they will not attract higher
employer contributions.
How to make voluntary contributions
There are a few different options for how you can make voluntary contributions:
1. Through your employer: If you work for the Queensland Government, you can make voluntary contributions direct from your
pay. You just need to fill out a Start or Change Regular Contributions to Your Super form and give it to your payroll office, or contact
your salary sacrifice provider if applicable. Talk to your employer directly about setting this up if you do not work for a Queensland
Government employer.
2. Complete a Deposit form: You can download and complete this form either from our website or call us to request a copy.
Include a cheque or money order for the amount you want to deposit.
3. Via BPAY®: Making voluntary contributions via BPAY® is easy. Just use the individual BPAY details listed in Member Online or
on your annual statement. If you can’t find the BPAY details, call us and we can help. The minimum contribution we can accept
through BPAY is $10. We can accept the contribution once your bank transfers your funds to QSuper.
4. Visit a Member Centre: You can make contributions in person with cash (a maximum deposit amount of $1,000 applies)
or by EFTPOS (any daily transaction limits set by your bank will apply) at one of our Member Centres.
Claiming a tax deduction
You may be able to claim a tax deduction for personal (after-tax) contributions, regardless of your employment status up to your
concessional cap. For more information about claiming a tax deduction on your super, including eligible contribution types, please
read the Notice of Intent to Claim or Vary a Deduction for Personal Super Contributions form available at qsuper.qld.gov.au/forms
®Registered to BPAY Pty Ltd ABN 69 079 137 518.
1 These figures are illustrative only and were calculated using the MoneySmart calculator www.moneysmart.gov.au (accessed 9 May 2019). Assumptions: 1. The calculation assumes savings of $20 per
week for a time period of 30 years. 2. The calculation assumes the interest compounds monthly. 3. The interest rate assumed is 6% p.a. and is net of fees and taxes. 4. The calculation assumes that earnings
are reinvested and fully credited at the end of each month. 5. The information should not be used as a guide to future performance of any investment. 6. Investment returns can be positive or negative
and this does not guarantee a future outcome. 7. The total saved does not take inflation into account. 8. Check with your chosen savings product provider in regard to actual interest calculations. 9. The
calculation provides an estimate of the future value of savings, which could vary significantly over time if any change is made to these assumptions. 10. These figures are provided only to demonstrate the
principle of compounding. They are not intended to represent projected returns in a QSuper Accumulation account.
Page 9
Personal Contributions Guide
9
Salary sacrificing is when you contribute a portion of your
salary to your super before you pay any tax on it, which lowers
the amount of salary you pay income tax on.
Salary sacrifice contributions are taxed at a maximum of 15%
by your super fund, which may be less than the tax you pay
on income. For many people, salary sacrifice can be beneficial
because you can effectively reallocate what would otherwise
be paid in tax to your super account. Remember to stay under
your concessional contributions cap.
This can be a tax-effective way of making contributions,
as when you salary sacrifice, you pay 15% tax on your
contributions instead of your marginal tax rate (which could be
up to 45%).1
If you are already making contributions you could contribute
your tax savings into your super. You could potentially boost
your super without necessarily decreasing your take-home pay.
If you are on a lower income, salary sacrifice might not be right
for you, as your income tax rate may be lower or only marginally
higher than the superannuation contributions tax rate.
To understand whether you could benefit from salary
sacrificing your super, try the calculators on our website at
qsuper.qld.gov.au/calculators-and-forms
Benefits of salary sacrifice
Salary sacrifice case study
Jane works for the Queensland Government. She
earns $72,500 per year, and makes standard after-tax
contributions to her super of $3,625 per year.
If she makes this contribution to her super as a before-tax
salary sacrifice contribution, her income tax will decrease
from $16,560 per year to $15,309 per year.
That means her take-home pay increases from
$52,315 to $53,566.2 Jane could then contribute the
difference to her super, meaning she is boosting her
super without necessarily affecting her take-home pay.
1 Plus applicable levies. 2 This case study is for illustrative purposes only to show how salary sacrificing works, and does not take into account your personal tax liability. The calculation is based on tax rates
for the 2019-20 financial year and it is assumed for the purpose of the case study that all terms and conditions have been met. Additionally, figures may be rounded up for ease of understanding. 3 For more
information on the work test and the work test exemption, see page 3 of this guide.
Claiming a tax deduction
for personal contributions
If you are under 75 years of age, you may be able to claim a tax
deduction for personal contributions, regardless of whether
you are self-employed or not.
Some restrictions and conditions apply, including that if you
are between age 65-74 you need to meet the work test or
work test exemption to be eligible to make a contribution and
therefore claim a deduction.
Note that the personal contributions you choose to claim a tax
deduction for are considered concessional contributions, so
they count towards your concessional contributions cap.
Before you make these types of contributions, it’s a good idea
to get advice from your accountant, financial adviser, or the
ATO to see whether it is the best strategy for you.
Claiming tax deductions on personal
contributions
If you want to claim a tax deduction on personal contributions
to your super, 15% contributions tax will be deducted from
the amount you claim. The amount you claim will also count
towards the concessional contributions cap.
To make a tax deduction claim, you need to be a member of
QSuper and make a personal contribution to your QSuper
Accumulation account in the financial year you want to claim
the deduction (we must have received these contributions
before 30 June of that financial year).
There are some age restrictions on claiming a tax deduction for
personal contributions:
• If you are age 75 or older, you cannot claim a deduction for
contributions that were made more than 28 days after the
month you turned 75.
• If you are under age 18 at the end of the financial year in which
you make the contribution, you must have earned income as
an employee or a business operator during the year.
Page 15
Personal Contributions Guide
15
Page 16
16
Phone
1300 360 750 (+617 3239 1004 if overseas)
Monday to Thursday: 8.30am – 5.00pm (AEST)
Friday: 9.00am – 5.00pm (AEST)
[email protected]
Postal address
GPO Box 200, Brisbane QLD 4001
Fax
1300 241 602 (+617 3239 1111 if overseas)
Member Centres
70 Eagle Street, Brisbane
63 George Street, Brisbane
Sunshine Coast University Hospital, Ground Floor,
Main Hospital Building, 6 Doherty Street, Birtinya
qsuper.qld.gov.au
This information is provided by QInvest Limited (ABN 35 063 511 580, AFSL 238274), which is ultimately owned by the QSuper Board (ABN 32 125 059 006,
AFSL 489650) as trustee for QSuper (ABN 60 905 115 063). QInvest is a separate legal entity responsible for the financial services it provides. All QSuper
products are issued by the QSuper Board as trustee for QSuper. This is general information only, so it does not take into account your personal objectives,
financial situation, or needs. You should consider whether QSuper is right for you, by downloading and reading the PDS from qsuper.qld.gov.au or calling us on
1300 360 750 to request a copy.
© QSuper Board 2019. CNC-2825. IB03. 07/19.
