Understanding how super works, your entitlements and ways to grow your savings could make a difference to your lifestyle when you retire.
Info sheet - July 2022
Your super is a long-term savings account designed to provide you with financial support when you retire. It’s important to understand who can contribute, how to contribute and what limits apply.
While you work your employer pays money into your account in accordance with your employment contract, federal and relevant state laws, awards and any enterprise bargaining agreement (EBA) that may apply.
If you work full time, part time, casually or, in some cases, as a contractor, your employer must pay SG contributions into your super account on at least a quarterly basis.
SG contributions are currently 10.5% of ordinary time earnings from 1 July 2022 and apply for most working Australians.
Ordinary time earnings is the money you earn for your ordinary hours of work plus extra money you get for over-award payments, performance-based bonuses, commissions, shift loading, allowances and certain paid leave.
Keep in mind there are generally delays from your pay date to when your employer pays contributions into Brighter Super. You can check your contributions and manage your account securely using Brighter Super’s Member online. To register or log in go to brightersuper.com.au.
If you think your employer isn’t up-to-date with their SG payments you should discuss the matter with your employer first. If you are not satisfied with their response, you contact the Australian Taxation Office (ATO). They have a step-by-step process to help you work out your entitlements. Contact 13 10 20 for more information or visit www.ato.gov.au.
Your employer may also make additional contributions to your super account, as prescribed by your employment contract, federal and relevant state laws, awards and any EBA.
If you work for Queensland local government, a water business or a local government entity you may be required to contribute more than 10.5% SG to your super to receive a higher employer contribution.
Adding to your Brighter Super account through one-off payments or contributing small amounts regularly will grow your super savings faster and give you more money to live off in retirement.
You can start growing your super savings today by making personal (after tax) contributions or through a salary sacrifice arrangement with your employer (before tax contributions).
Limits are set by the Australian Government and are known as contribution caps. There are different caps for your concessional and non-concessional contributions. For more information read our Contribution caps info sheet.
To pay into your super account you must be 74 years old or younger.
These contributions are paid in from after-tax money and are also referred to as non-concessional super contributions.
You can make one-off payments at any time or contribute small amounts regularly in one or all of the following ways:
Talk to your payroll area and ask them to pay an amount from your after-tax money each pay period.
Pay as often as you like through BPAY. Log in to your Brighter Super account securely through Member Online for the biller code and reference number, then start making payments.
Everyone under age 67 and those aged 67 to 74 who satisfy the work test can claim a tax deduction for their personal contributions. While personal contributions are paid from after-tax money, when claimed as a tax deduction they will count towards the concessional contributions cap and be taxed at 15%. Our Superannuation tax info sheet has more information.
If you are employed and your annual income is less than $57,016 (2022/23) you could be eligible to receive the Australian Government’s super co-contribution. For every $1 you put in to your super from your after tax pay you could receive 50 cents from the Australian Government (up to a maximum of $500). Our Support for low to middle-income earners info sheet has more details.
If you make an after-tax contribution of at least $3,000 to your partner’s super you’ll help them grow their savings and save a little extra on tax yourself. To receive the full tax offset of $540, your spouse must have an annual income of less than $37,000. The offset gradually reduces for income above this level and completely phases out at a total annual income above $40,000. Rules apply. Read our Super for your partner info sheet to learn more.
If your employer agrees, you can arrange to salary sacrifice your super contributions. This is where you agree to forego some of your before-tax pay and have your employer pay that amount directly into your Brighter Super account. By putting money into your super this way, you pay less income tax and have more money working for you in your super account. You could also take home more pay.
While salary sacrifice isn’t for everyone, it may suit you if your marginal tax rate is higher than 15% (typically those who earn over $45,000 each year). Our Salary sacrifice info sheet explains how this works in more detail. These contributions are known as concessional contributions and limits apply. It’s important to remember that employer contributions and any contribution you claim as a tax deduction count towards the concessional contributions cap.
15% contributions tax applies to salary sacrifice contributions, employer contributions and contributions for which a tax deduction is claimed.
From 1 January 2023, if you're aged 55 and over, you could be eligible to top up your super with proceeds from selling your family home.
Find out more on downsizer super contributions.
If you don’t tell us your TFN, your concessional contributions could be taxed at a much higher rate, as will any benefits paid to you. You’ll also miss out on the Australian Government’s super co-contribution (if you’re eligible to receive it) and we cannot accept any personal contributions to your account. Log in to your Brighter Super account securely through Member Online to check your TFN status and tell us your TFN if we don't have it on file.
LGIAsuper Trustee (ABN 94 085 088 484) (AFSL 230511) (the Trustee) as trustee for LGIAsuper (ABN 23 053 121 564) (RSE R1000160) (the Fund) trading as Brighter Super. Brighter Super products are issued by the Trustee on behalf of the Fund. Brighter Super may refer to the Trustee or LGIAsuper as the context may be.
This info sheet provides general information only and does not take into account your individual objectives, financial situation or needs. As such, you should consider whether it is appropriate in light of your own objectives, financial situation and needs prior to making any decision. You should consult a licensed financial advisor if you require advice which does take into account your personal financial circumstances. You should also obtain and consider the Product Disclosure Statement (PDS) before making any decision to acquire any products. A Target Market Determination (TMD) is a document that outlines the target market a product has been designed for. Find the PDSs and TMDs at brightersuper.com.au/governance.