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Making super contributions

We accept contributions on an irregular or regular basis. Payment can be made by:

  1. cheque, which should be made payable to Australian Ethical Superannuation Fund (for [insert your name]), and crossed Not negotiable;
  2. electronic transfer – contact us to make payment arrangements; or
  3. direct debit from a bank or credit union account, where you will need to complete the Direct debit form (Form E) available from the superannuation PDS, or from the forms for members page.
We do not accept postal orders, money orders or credit card payments.

Accepted contributions and rules:

Concessional contributions

Non-concessional contributions

Previously referred to as deductible or taxable contributions, these contributions are typically made on your behalf by your employer. They include

  • employer contributions: superannuation guarantee and other contributions
  • salary sacrifice (before tax) contributions.

Concessional contribution limits

Concessional taxation arrangements for contributions which are tax deductible to an employer or to an individual are limited to an amount of $50 000 a year per person (commencing 1 July 2007). If concessional contributions exceed $50 000* a year per person there are significant taxation implications. For further information about taxation, please read the section What about taxation? at page 44 of the Product Disclosure Statement.

A transition period applies in which people aged 50 and over will be able to make concessional contributions of up to $100 000 per year without breaching the cap. This period applies to the financial years of 2007–08 to 2011–12. A person turning 50 during that period will be able to take advantage of the transitional arrangements from the time they turn 50.

* The $50 000 limit will be indexed to average weekly ordinary time earnings, but will only increase in $5000 increments.

Previously referred to as undeducted or after tax contributions, these are typically

  • voluntary (after tax) contributions and spouse contributions
  • government co-contributions
  • rollovers and transfers.

Non-concessional contribution limits

The Fund can only accept up to a maximum of $150 000** non-concessional (post-tax) contributions from a member per annum (commencing 1 July 2007).

If you make contributions in excess of the non-concessional cap because you contribute to more than one fund then there are significant taxation implications. For further information about taxation, please read the section What about taxation? at page 44 of the Product Disclosure Statement.

To accommodate larger non-concessional contributions, people aged under 65 will be allowed to bring forward two years of contributions. For example, a person under 65 will be able to make up to $450 000 of contributions in the 2007–08 financial year, but then will be unable to make further non-concessional contributions until the 2010–11 financial year.

Once a person turns 65 they will be able to make $150 000 of non-concessional contributions each financial year, provided they satisfy the work test described below.

There are two ongoing exemptions to the non-concessional cap. These are:

  • proceeds from the disposal of assets that qualify for the small business capital gains tax retirement exemption ($500 000 cap) or have been held for 15 years ($1 000 000 cap). Both types of proceeds are subject to a single lifetime $1 000 000 indexed cap, and
  • proceeds from a settlement for an injury resulting in permanent disablement.

** The non-concessional cap will remain at three times the level of the concessional cap and will increase as the concessional cap moves with indexation.
 

Age and employment contribution rules


 Concessional contributions Non-concessional contributions (can only be accepted if the member’s TFN has been quoted to the Fund)
Age of member in years Mandated employer contributions (superannuation guarantee and award contributions) Voluntary employer contributions Member contributions Eligible spouse contributions
Less than 65 can be accepted can be accepted can be accepted can be accepted
65 but less than 70 can be accepted without restriction can be accepted provided person gainfully employed on at least a part-time basis can be accepted provided person gainfully employed on at least a part-time basis and payment does not exceed the non concessional contributions cap can be accepted provided the receiving member spouse is gainfully employed on at least a part-time basis
70 but less than 75 can be accepted without restriction cannot be accepted can be accepted provided person gainfully employed on at least a part-time basis and payment does not exceed the non concessional contributions cap cannot be accepted
75 or older can be accepted without restriction cannot be accepted cannot be accepted cannot be accepted

A person is gainfully employed on at least a part-time basis for a financial year if they:

  • are employed or self-employed for gain or reward during the financial year
  • have worked at least 40 hours in a period of not more than 30 consecutive days in that financial year.

Employer contributors

You can pay superannuation contributions to the Fund for one or more of your employees.

If this is the case you should:

  1. Ensure that the employees for whom you will contribute have a copy of the Product Disclosure Statement.
  2. Complete and sign the Employer Contribution Application form (Form C).
  3. Ensure that each employee for whom you are contributing signs an Accumulation and Rollover Application for Membership (Form A). If the Fund does not receive an Accumulation and Rollover Application for Membership (Form A) for your employee within 30 days of receiving a contribution, we will not accept any further contributions for that employee and will need to return any contributions received for that employee to the employer.
  4. Complete and send the Employer Contributions Remittance Advice (Form F).
  5. Attach a cheque (or Direct Debit Request – Form E) for investment.
  6. Forward the application and all other items to your adviser or to Australian Ethical Superannuation at the address indicated on the inside back cover of the PDS.

We will notify you in writing of your employer sponsor code. Employees will receive notice of employer contributions as part of their half-yearly reports.

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