As a member of the Pension Scheme, each pay day your employer deducts your member contribution from your after-tax pay.

As you’ve already paid tax on this money, it's not taxed again when you claim your super; however, you will pay tax on any investment earnings.

Each year you can choose your contribution rate: 3%, 4.5%, 6%, 7.5% or 9%, or your standard contribution rate. To change your contribution rate for the next financial year you need to submit your Change to Contribution Rate form by 30 April. You'll start contributing at the new rate from the first pay period in July.

These contributions are paid into your Member Account.

In order to receive the maximum employer funded component of your retirement entitlement you need to average your standard contribution rate for at least 30 years leading up to age 60. Your standard contribution rate was determined when you joined the scheme and can be found on your Annual Statement. It is usually between 5% - 7%.

It’s important you are aware that if you reduce your contribution rate to 0% you can't catch up by contributing at a higher rate later on.

Any variation to your standard contribution rate will have an affect on your final entitlement and you should seek financial advice before reducing your contribution rate.

 

But wait, there’s more!

As you automatically make after-tax contributions, if you earn less than $53,564 a year you could qualify for the Commonwealth Government’s Co-contribution.