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Contributions to Super

As an active member in the Defined Contribution Division, contributions to your super may be made up of the following contributions: employer contributions (that is, contributions made on your behalf by BlueScope Steel), your contributions in the form of basic member contributions or additional voluntary contributions (AVCs and Government co-contributions (if you are eligible).

To boost your super savings you can make your own contributions.

There are generally two types of member contributions – regular and lump sum. These contributions can be made either before tax (‘concessional contributions‘) or after tax (‘non-concessional contributions‘). There are limits on the maximum amounts of before-tax and after-tax contributions that will attract tax concessions.

If you have a Spouse Account or are a member of the Retained Benefit Division, refer to your Product Disclosure Statement for more information about the contributions that may be made to your account in the Fund.

The limits for concessional tax treatment

It is important to understand the difference between concessional contributions and non-concessional contributions, as different tax rates will apply to each type of contribution, particularly if your contributions exceed the relevant limits.

Concessional contributions

Concessional contributions, also known as before-tax contributions, include all contributions made from your before-tax salary, including salary sacrifice contributions and employer contributions (noting that special rules apply to employer contributions for DB members).

The concessional contributions limits are outlined in the table below:

Financial year Age under 50 Age 50 or older
2015/16 $30,000 $35,000

Concessional contributions are taxed in the Fund at 15%. From 1 July 2013, all excess before-tax (concessional) contributions are taxed at the person’s marginal rate plus the Medicare levy. A tax offset of 15% is provided, to allow for the tax paid by the Fund. In most cases, an excess concessional contributions charge will be payable.

Excess concessional contributions also count towards your non-concessional contribution limit for the relevant financial year. However, you can elect to have up to 85% of the excess contributions released from the Fund, to avoid having them count towards your non-concessional contribution limit.

Non-concessional contributions

Non-concessional contributions are contributions made from after-tax money. No additional tax is payable on all non-concessional contributions up to the contribution limit. Any contributions made in excess of this limit will be taxed at 49% (including Medicare levy, excluding Temporary Budget Repair levy).

The non-concessional contribution limit is:

Financial year Limit ‘Bring forward’ rule over 3 years
2015/16 $180,000 $540,000

(There is a bring forward provision for people under age 65, who can go over the non-concessional cap by up to two years’ worth of contributions without penalty.)

Important! As part of the 2016/17 Federal Budget, it has been proposed that effective immediately, the $180,000 annual non-concessional contribution cap is replaced with a $500,000 lifetime cap. This change is retrospective, which means it takes into account all after-tax contributions a person has made since 1 July 2007. Please note that this proposal is yet to become law and we will keep you updated about further developments.

If you are considering making contributions in excess of the annual non-concessional contribution limit, please call SuperConnect to obtain further information about how this 'bring forward' provision operates.

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Disclaimer Issued by Total Risk Management Pty Limited (ABN 62 008 644 353 AFSL 238 790) as Trustee for BlueScope Steel Superannuation ABN 42 459 430 081.