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Growing your super is important to fund your retirement. In Australia, your employer must contribute to your super on a quarterly basis (as a minimum), but you can also add extra to your account with your before or after-tax earnings.

Concessional super contributions

Concessional contributions are funded by income that has not yet been taxed. They are also referred to as ‘before-tax’ contributions. These contributions are typically paid by your employer to your super account.

Super guarantee

In Australia, the super guarantee (SG) is the compulsory contribution your employer pays into your super from your pre-tax salary. From 1 July 2023 the current SG rate is 11% of your earnings and is set to increase as outlined in the below table. 

Period
Super guarantee percentage rate
1 July 2022 – 30 June 2023
10.50
1 July 2023 – 30 June 2024
11.00
1 July 2024 – 30 June 2025
11.50
1 July 2025 - onwards
12.00

Source: ATO

These contributions are taxed at 15%. Generally, all employees over 18 years, whether full-time, part-time or casual, are eligible to receive the super guarantee and you can nominate your preferred super fund to be paid into.

Salary sacrifice contributions

Some employers may offer a salary sacrifice or salary packaging arrangement where you can choose to ‘sacrifice’ part of your pre-tax salary and ask your employer to pay it directly into your super. Generally, it will be taxed at 15% instead of your marginal tax rate.

Learn more about the tax concessions of super contributions.

If you’re an Essential Super1 member and would like your employer contributions paid into your account, you can fill out a Super Choice form to provide to your employer. You’ll need your account number from your statement.

Don’t have your account number handy? Simply log into NetBank or the CommBank app and download the pre-filled SuperChoice form.

Non-concessional contributions

Non-concessional contributions refer to contributions that are funded by income that has already been taxed. They are also referred to as ‘after-tax’ contributions. 

Personal contributions

You may choose to make voluntary super contributions from your take-home pay. This can usually be done directly within your account. These earnings are taxed at only 15%, rather than your marginal tax rate. You may be able to claim a tax deduction on these contributions. It is important to note that when you claim tax deduction on a personal contribution, this amount claimed will then be counted towards your concessional contribution cap.

To claim or vary a tax deduction for personal super contributions, you will need to complete a notice of intent form and ensure you’ve met the eligibility criteria (including timeframes). For more information on when you should complete the notice of intent, please visit the ATO website.

Low income super tax offset (LISTO)

If you earn $37,000 or less a year, you may be eligible for a LISTO payment that is a government superannuation payment of up to $500 a year. Your super fund will need your tax file number (TFN) to accept a LISTO payment on your behalf. Check the eligibility criteria on the ATO website.

If you are an Essential Super member, you can check if your TFN has been provided on NetBank or in the CommBank app.

Government co-contributions

If you are a low or middle-income earner and have made after-tax contributions to your super, you may be eligible for a government co-contribution of up to $500 each year. If you’re eligible and your super fund has your TFN, this payment will be paid into your super account automatically. For more information on the eligibility criteria, please visit the ATO website.

Spouse contributions

Spouse contributions are after-tax payments that can be invested into your spouse’s super fund. If your spouse is not working or earns a low income, you may be eligible for a tax offset on these contributions. For more information on the eligibility criteria, please visit the ATO website.

Wondering how much extra you can contribute your super?

Caps apply to concessional and non-concessional contributions. Exceeding these caps can cause you to pay extra tax.

As at 1 July 2021, you can contribute up to $27,500 in concessional payments a year, inclusive of your SG contributions.  Your personal concessional contribution cap may vary depending on factors such as the amounts you’ve contributed in previous years as well as your eligibility to access the carry forward concessional contribution arrangement. You can learn more about this on the ATO website.

As at 1 July 2021, your annual non-concessional cap is $110,000. Your personal non-concessional contribution cap may vary depending on factors such as the amounts you’ve contributed in previous years as well as your eligibility to access the bring forward arrangement. You can learn more about this on the ATO website.

Please refer to the ATO website on how you can work out your personal concessional contribution cap and non-concessional contribution cap.

Discover more frequently asked questions about super.

Explore Essential Super

Things you should know

This is general advice only. It does not take your personal objectives, financial or taxation situation or other needs into account. Before acting, you should consider the appropriateness of the advice, having regard to your objectives, financial situation and needs.

1Avanteos Investments Limited ABN 20 096 259 979, AFSL 245531 (AIL) is the Trustee of Essential Super ABN 56 601 925 435 and the issuer of interests in Essential Super. Essential Super is distributed by the Commonwealth Bank of Australia ABN 48 123 123 124, AFSL 234945 (the Bank). Colonial First State (CFS) is Superannuation and Investments HoldCo Pty Limited ABN 64 644 660 882 (HoldCo) and its subsidiaries which include AIL. The Bank holds an interest in CFS through its significant minority interest in HoldCo.

This information is issued by AIL and may include general financial product advice but does not consider your individual objectives, financial situation, needs or tax circumstances, and so you should consider the appropriateness of the advice having regard to your circumstances before acting on it. The Target Market Determination (TMD) for Essential Super can be found at cfs.com.au/tmd and includes a description of who the financial product is appropriate for and any conditions on how the product can be distributed to customers. You should read the Product Disclosure Statement (PDS) and the Reference Guides for Essential Super carefully and consider whether the information is appropriate for you before making any decision regarding this product. Download the PDS and Reference Guides at commbank.com.au/essentialsuper-documents or call us on 13 4074 for a copy. Neither the Bank, AIL, CFS, nor any of their respective subsidiaries guarantee the performance of Essential Super or the repayment of capital by Essential Super. An investment in this product is subject to risk, loss of income and capital invested. An investment in Essential Super is via a superannuation trust and is therefore not an investment in, deposit with or other liability of the Bank or its subsidiaries. Where we mention ‘we’, ‘us’ or ‘our’, we mean AIL.

Any information provided by CBA may include general financial product advice but does not consider your individual objectives, financial situation, needs or tax circumstances, and so you should consider the appropriateness of the advice having regard to your circumstances before acting on it.  You should read the PDS and the Reference Guides for Essential Super carefully and consider whether the information is appropriate for you before making any decision regarding this product.

The insurance provider is AIA Australia Limited ABN 79 004 837 861, AFSL 230043 (AIA Australia). AIA Australia is not part of the Commonwealth Bank Group or CFS. The insurance cover is provided under policies issued to the Trustee.