Lump sum contributions
If you have come into some money, perhaps sold an investment property or received a bonus from your work, you might like to consider topping up your retirement savings with a lump sum deposit. Remember, you can access it as tax-free income once you are over age 60.
Use ASIC’s superannuation calculator to see the difference a lump sum (post-tax) contribution to your super can make to your retirement savings.
Lump sum post tax contributions are called non-concessional contributions and limits apply. For 2017/18 the limit is $100,000 per person pa (provided they have met the work test – see below) or $300,000 per person averaged over three years for anyone less than 65 years.
From 1 July 2017, this “bring forward” amount is dependent on your total super balance on the day before the financial year in which the contributions are made to trigger the bring forward. Transitional arrangements apply if you triggered a bring forward prior to the 2017/18 financial year.
The work test requires individuals to work 40 hours or more during a consecutive 30 day period in the financial year.
It is important to remember that you generally cannot access any money you contribute to super until you reach your preservation age and retire.
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