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What type of contributions can I make to Essential Super?

See all Essential Super FAQs

Last updated 27 February 2014

When making contributions to a superannuation account, it's important that your super fund knows what type of contribution you are making. Different contributions are treated differently for tax purposes and you could end up paying more tax than you need to if you don't identify the correct contribution type.

Here is a summary of the contribution types available for Essential Super:

Personal contribution (MV) These are contributions made using money that's already been taxed (for example, money from your own bank account). This can be added into your super fund, tax-free, and earnings on this money are taxed at only 15%, rather than your marginal tax rate.
Employer superannuation guarantee (SG) This contribution type is generally used by employers to pay super on behalf of their employees. Contributions made using this code will be taxed at 15% because the money has not previously been subject to tax.
Salary sacrifice (SS) These are additional contributions an employer will pay on your behalf using pre-tax money (money you haven't paid tax on). This type of contribution is paid directly into your super (and taxed at 15%) instead of being paid to you as salary (which would be taxed at your marginal tax rate).
Spouse contribution (SP) A spouse super contribution is an after-tax payment that can be invested into a complying superannuation fund held in your spouse's name. In other words you're investing money into your spouse's super account rather than your own.

It is important to remember that once a contribution is made into a super account, it can only be withdrawn under certain conditions such as retirement, or once you reach the age of 65. For more information on making contributions into Essential Super, please call us on 13 40 74 between 8am and 7pm (Sydney time), Monday to Friday.

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