Adding extra

Add to your super now to help you live the lifestyle you want in retirement

For many of us, the compulsory amount of super will not be enough to provide us with the lifestyles we want in retirement. Adding a bit more to your super now, will help you get there.

There are two main ways to add to your super:

  1. Before-tax salary sacrifice contributions through your employer
  2. After-tax personal contributions from your take-home pay or savings

1. Salary sacrifice

Salary sacrifice is an arrangement you set up with your employer to put a little bit more of your before-tax salary into super.

Less tax, more super

Salary sacrifice can be one of the most tax-effective ways to add to your super. Why? 

  1. Contributions are generally taxed at lower rates than most people’s income tax rates
    Contributions into super from your pre-tax income are generally taxed at 15%... much lower than up to 49% (including the Medicare levy) that may apply if you take the money as income, depending on what you earn.

    Although, higher tax rates may apply to your taxable contributions if you are a high income earner (ie income over $300,000).
  2. Salary sacrifice can lower your taxable income
    When you salary sacrifice, your employer makes the extra contribution before income tax is taken out. Income tax is then applied to the amount that’s left.

Who can salary sacrifice?

The tax treatment means that salary sacrifice may be best suited to people who earn at least $18,201 a year and have a marginal tax rate of 19% or more.

People who earn below that amount might benefit more from making after-tax personal contributions in order to take advantage of the Government co-contribution.

You must be employed and be under age 75 to salary sacrifice into super. After age 65 conditions apply.

Are there caps on the amount?

The Government has applied a cap on how much you can contribute to your super at concessional tax rates.

Amounts above the cap are taxed at your marginal tax rate (plus interest). The cap amounts vary depending on your age and the type of contribution you make. See the Member Guide – Tax – contributions  for details.

Some employers may also have a limit on the amount they allow you to salary sacrifice, so you should check that with your employer.

Start salary sacrificing

Number 1Decide how much

Decide how much you want to salary sacrifice. You can salary sacrifice from your regular salary, bonuses or allowances.

Use our calculator to help work out the right amount for you.

Note: Before salary sacrificing, it’s important you review all of the super contributions you make that are taxed at concessional rates amounts to ensure you don’t exceed the concessional contributions cap. Exceeding the cap may mean you’re subject to an interest charge and additional tax.

Number 1Fill in the form

Complete and sign a Make a personal and/or salary sacrifice contributions through your employer form. Hand it to your HR or payroll manager and they will start making payment into your VicSuper account.

If you’re a school-based staff member or principal employed by DEECD, you’ll need to complete a Salary Packaging Form instead.

2. Personal (after-tax) contributions

Personal after-tax contributions are voluntary payments you make into super yourself from your take-home pay or after-tax savings. 

  1. Get a bonus $500
    The Government rewards people for adding more to their super. By making an after-tax contribution to super you could be eligible to receive a Government co-contribution of up to $500 if you earn under $50,454 year.
  2. Add early to benefit later
    Adding a bit more early on can make a massive difference down the track because of the long-term benefits of compound interest. Even adding a small amount helps. Use our calculator to see how adding a little can help you. 
  3. Lower tax on investment earnings
    Investment earnings in super are taxed at a maximum of 15%, compared to up to 49% (including the Medicare levy) in income tax that may be apply to other types of investments.

Who can make personal contributions?

You must be under 75 to make personal contributions into super. Conditions apply between the age of 65 and 74 (inclusive).

Are there caps on the amount?

Contribution caps, set by legislation, restrict the amount of personal contributions you can make each year without incurring additional tax. Refer to page 2 of the Member Guide 

Start making personal contributions

VS CompareDirect debit

Use direct debit to set up regular automatic contributions into your VicSuper account.

Download a Personal contributions via direct debit form, and send your completed form to VicSuper, GPO Box 89, Melbourne Vic 3001

Icon for BPAYOnline via BPAY®

Transfer money directly from your bank account to your VicSuper account using BPAY®.

To get the BPAY® Biller Code and your unique reference number to use for your internet or phone banking, login to your account, or call us on 1300 366 216.

Not registered for VicSuper MembersOnline? You can register here.

Icon for appointmentThrough your employer

Complete and sign a Make a personal and/or salary sacrifice contributions through your employer form and give it to your HR or payroll manager.

Icon for cashCheque or Money Order

Download a Make a personal contribution directly to VicSuper (including self-employed contributions) form, and send your completed form along with your cheque or money order to:

VicSuper, GPO Box 89, Melbourne Vic 3001