Entering contributions correctly can be tricky, as there are many different types of contributions available. Below is a guide to help you understand each type of contribution that can be entered into Simple Fund 360, to help make sure that you’re entering concessional contributions correctly.
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Employer |
Employer contributions are made on behalf of an employer as part of a salary package (this also includes salary sacrifice contributions). Typically 11.5%. These are also known as a Superannuation Guarantee Contribution (SGC) |
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Concessional |
Concessional contributions are made from before-tax income and are taxed at 15% in your super fund. |
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Non-Concessional |
Non-concessional contributions are made from after-tax income and are not taxed in your super fund. |
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Spouse and Child |
A member making a contribution for another spouse or child. These counts towards the non-concessional contributions cap. |
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Government Co-Contributions |
If the member is a low or middle-income earner and makes personal (after-tax) contributions to their super fund, the government may also make a contribution (called a co-contribution) up to a maximum amount of $500 |
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Low Income Super Contributions |
The low income super tax offset (LISTO) is a government superannuation payment of up to $500 to help low-income earners save for retirement. |
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Directed Termination Payment |
The amount of a transitional termination payment that was directed from the employer to super is known as a directed termination payment. |
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15 Year Exemption |
If a member is aged 55 or older and retiring or is permanently incapacitated, and the member has owned an active business asset for at least 15 years, the member won’t pay CGT when disposing of the asset by sale, gift or transfer. Amounts from this exemption may be able to be contributed to the members super fund without affecting non concessional contribution limits. |
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Retirement Exemption |
There is a CGT exemption on the sale of an active business asset, up to a lifetime limit of $500,000. If a member is under 55, money from the disposal of the asset must be paid into a complying superannuation fund or a retirement savings account. Amounts from this exemption may be able to be contributed to the members super fund without affecting non concessional contribution limits. |
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Personal Injury Election |
A fund member that has received an eligible personal injury payment. By completing a Contributions for personal injury election form, all or part of the amount can be contributed to super without it counting towards the non-concessional contributions cap |
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Other Family and Friends |
Other Family and Friends contributions made for the member by anyone other than the member, their spouse or their employer. Other family and friends contributions count towards your concessional contributions cap. |
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Foreign Super Fund Amount |
Members may be able to be paid an amount by transferring money from a foreign super fund to an Australian super fund. If you transfer the amount to your Australian super fund, this amount will generally count towards your super contributions caps. |
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Transferred from Reserves |
If a fund allocates an amount from its reserves which meets certain conditions, the super fund must report it. It will count towards a contributions cap. Transfers from reserves can be assessable or non-assessable. Assessable transfers from reserves count towards the concessional contributions cap. Non-assessable transfers from reserves count towards the non-concessional contributions cap. |
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Non Complying & Previously Non Complying Fund |
The total amount of contributions made whilst the fund was non-compliant. |
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Non-Mandated |
Non-mandated contributions include contributions made by employers over and above their super guarantee or award obligations. They can also be member contributions. These are contributions made by or on behalf of a member, such as personal contributions, eligible proceeds from primary residence disposal (downsizer contribution), super co-contributions, eligible spouse contributions or contributions made by a third party, such as an insurer. |
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Contribution Reserves |
Contributions Reserving strategy refers to an arrangement whereby Contributions made in June of a Financial Year are allocated to the Member in the next Financial Year. Please see our article Contribution Reserves and Member Allocation for more information. |
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