Contributions

Contributions are 'deposits' that go into your account. The are a number of different types of contributions. These are after-tax, salary sacrifice, employer, Government Co-Contribution, Spouse and Public Offer contributions.

After-tax (personal) Contributions

These are contributions to the Fund made by you after income tax has been deducted and no tax deduction has been claimed. These contributions do not attract contribution taxes, and earnings are taxed at a maximum rate of 15%. When these 'undeducted' contributions are withdrawn, no tax is payable on the contributions themselves (though tax may be payable on any earnings).

These contributions are used to determine the Government Co-Contribution.

How do I make after-tax contributions?

There are several easy ways for you to top up your super with personal contributions:

1. Send us a cheque. Please include your name, membership number and address so we can correctly identify your account.
2. Ask your employer to deduct contributions from your pay. Your employer can send us the money at the same time they send their SG and Salary Sacrifice contributions to Catholic Super for you. Ask your employer about this option.
3. Arrange for a direct debit from your bank account. Contact our Helpline to request a form.
   

Salary Sacrifice Contributions

Your employer may permit salary sacrifice contributions – this means making contributions from your salary before-tax. Salary sacrifice contributions may have tax advantages for you, however, the Government co-contribution will not apply. To be eligible for the co-contribution your personal contributions must be after-tax. For more information and to properly evaluate the best way for you to make contributions, you should seek professional financial advice.

Employer Contributions

These are contributions made by your employer (excluding Salary Sacrifice contributions). This is usually 9% of your salary in accordance with Superannuation Guarantee Legislation.

Government Co-contributions

If you earn less than $60,342 in the 2008/2009 financial year (income and reportable fringe benefits) and are aged less than 71 years, you may be entitled to a Government co-contribution of up to $1,500 on contributions you pay to Catholic Super from your after-tax income.  The maximum co-contribution reduces for incomes between $30,342 and $60,342.

If you are entitled to a co-contribution payment, it will be made automatically after your annual tax return is assessed by the Australian Taxation Office (ATO).  For example, for the year ended 30 June 2008 the co-contribution should be automatically credited to your superannuation Fund Account toward the end of 2008.

For more information, contact the ATO on 13 10 20.

Public Offer Contributions

These are contributions made by a Public Offer (or Personal Plan) Member.

Spouse Contributions

Spouse Contributions are contributions made on behalf of a spouse, even if they are not employed. Once a spouse makes such a payment it is fully vested in the receiving spouse (ie the member of the Fund). This means that the contributing spouse no longer has any right to the money and the Fund cannot refund it back to them. There is no limit on the amount of payments a spouse can make in a particular year.

The contributing spouse:

• can be any age
• must be an Australian resident
• must be receiving assessable income (from any source).

The receiving spouse:

• must be under age 65 when the payment is received (age 70 if working at least 40 hours in a period of not more than 30 consecutive days during the financial year)
• must be an Australian resident.

In some circumstances, the contributing spouse may be eligible for a tax rebate of up to $540 on these superannuation payments.

The rebate is available if:

• the payment is made on or after 1 July 1997
• the payment is made after tax (ie. not salary sacrifice)
• the payment is not tax deductible for the spouse
• both the contributing and receiving spouse are Australian residents
• the receiving spouse's assessable income is less than $13,800 pa.

Definition of Spouse

'Spouse' means a legal or de facto husband and wife. A 'de facto' spouse means a person who lives with you on a genuine domestic basis. It does not include a person who lives separately and apart from you on a permanent basis, even though you may be legally married. It does not apply to same sex partners.

Preservation and Tax relating to Spouse Contributions

If the receiving spouse has never been employed before turning age 65, then any benefits arising from payments made on that spouse's behalf are preserved until age 65.

If the receiving spouse has been employed, then benefits arising from payments made on that spouse's behalf are preserved between age 55 and 60 depending on their date of birth.

How do I make spouse contributions?

To make payments on a spouse's behalf, the paying spouse must complete a Spouse Contribution Advice Form which can be obtained by contacting us or by downloading from this website.