Additional contributions

When it comes to your retirement, it’s the little things that make a big difference – from what you save, to what you contribute. Learn about how you can contribute more to your super here.

Select a scheme
  • ADF Super
  • CSS
  • DFRDB
  • MilitarySuper
  • PSS
  • PSSap
I don't know my scheme

You don’t have to contribute extra to super, however doing so may be a good idea as your retirement savings may need to last you 20 years or longer. Even small regular amounts can grow to have a bigger impact on your retirement over a long investment period.

As a PSS contributor, you are able to contribute to increase your PSS benefit, or choose to make additional contributions into a PSSap Ancillary account.

Growing your PSS benefit

PSS Retirement Benefit

The longer you contribute to PSS and the higher your contribution rate, the greater your final PSS retirement benefit is likely to be. That's because PSS provides you with a defined benefit determined by a set formula. It's calculated using the following three factors:

1.   your rate of personal fortnightly contributions

2.   your Final Average Salary (FAS); and

3.   your length of PSS contributory membership.

You can't contribute to PSS if you do not work for a PSS participating employer. 

To again be eligible to contribute to your PSS account, you must have a PSS preserved benefit entitlement at the time you rejoin the Australian Public Service or another PSS participating employer.

Personal fortnightly contributions 

You can choose to contribute between 2% and 10% of your super salary, or at a 0% rate. Your contribution rate is based on your gross fortnightly super salary and is deducted from your after-tax pay.


Your Benefit Multiple (part of a set formula to determine your PSS benefit) accrues according to your rate of contribution. It grows each fortnight with each contribution you make.

Member contributions are classed as non-concessional contributions for tax purposes.

Contributions and benefit growth

The below table shows how much your Benefit Multiple will increase each year dependent on your fortnightly contribution rate. This table is for full-time members only. Part-time members will receive a pro-rata multiple accrual based on their part-time hours.

Contribution rate

(% of salary)

Accrued Benefit Multiple p.a

(if you have satisfied the 10-year rule)

Accrued Benefit Multiple p.a

(if you have not satisfied the 10-year rule)

0%

0.11

0.11

2%

0.15

0.15

3%

0.17

0.17

4%

0.19

0.19

5%

0.21

0.21

6%

0.23

0.22

7%

0.25

0.23

8%

0.27

0.24

9%

0.29

0.25

10%

0.31

0.26

What is the maximum Benefit Multiple I can accumulate?

There is a limit to the Benefit Multiple that you can accumulate which is determined by the Maximum Benefit Limit (MBL). The MBL that applies to you depends on your Final Average Salary.

Average Salary

MBL – From 1 July 2018

Less than $73,500

$735,000

$73,500 and over

10 times average salary


For example:

Steve’s final average salary is $62,339. This means his maximum benefit in PSS is $735,000 or, a Benefit Multiple of 11.79 times his salary (i.e. $735,000 divided by his average salary of $62,339).

Anne’s final average salary is $85,000. This means her maximum benefit in PSS is $850,000 (i.e. a Benefit Multiple of 10 times her average salary of $85,000).

Where can I get additional information?

You can access the iEstimator through our Member Services Online to assist you in understanding the impact that making additional contributions can have on your final PSS benefit.

Contributions into super generally must remain within super until you retire and reach preservation age, so you need to weigh up the costs and benefits of additional contributions, taking into account your objectives, financial situation and needs, before making any financial decisions regarding your super.

PSSap Ancillary

Personal After Tax Contributions

Additional personal and spouse contributions can be made via BPAY, cheque and money order. Please note that contribution caps apply – if you exceed the cap, you may have to pay extra tax. Please refer to the Australian Tax Office website for more information on contribution caps.

CLAIMING TAX DEDUCTIONS

You may be able to claim a tax deduction for personal (after-tax) contributions made into your PSSap Ancillary account. Any amounts claimed as a tax deduction will have 15% tax deducted and be counted towards your concessional (before-tax) contribution cap. For further information about personal after tax contributions refer to the Australian Tax Office website.

Salary Sacrifice

Salary sacrifice payments are before tax contributions which are taxed at 15% on entry to your account.

WHAT ARE THE BENEFITS OF SALARY SACRIFICING?

Salary sacrifice payments are before tax contributions which are taxed at 15% on entry to your account. This means that you could pay less tax on salary sacrifice contributions than you would pay if you took that same amount as ordinary income. 

DOES IT MEAN I GET PAID LESS EACH FORTNIGHT?

If you salary sacrifice super contributions you will have less take home pay each fortnight. However, this may be a tax effective way to save for your retirement if your personal tax rate is greater than 15% as the amount going into your super may be more than the amount your take home pay is reduced by.

The amount you decide to contribute is entirely up to you, so you can make sure it’s affordable and within your budget.

THINGS YOU NEED TO KNOW
  • The higher your income tax rate, the more benefit you get. The benefits for those earning less than $37,000 per year are limited.
  • There is a cap on before-tax super contributions. See more information on contribution caps via the Australian Tax Office website.
  • Your employer may also have a cap on the amount you are allowed to salary sacrifice. Be sure not to exceed this amount.
  • You should talk to your employer to make sure that you understand whether salary sacrificing amounts into super will impact on any other element of your remuneration.
  • Contributions into super generally must remain within super until you retire and reach preservation age, so you need to weigh up the costs and benefits of salary sacrifice, taking into account your objectives, financial situation and needs, before making any financial decisions regarding your super.

HOW DO I SET IT UP?

1.   Check whether your employer allows you to salary sacrifice into super. Most employers allow salary sacrificing but it’s best to confirm with your personnel/HR section.

2.   Complete the Apply to join PSSap as an Ancillary Member form.

3.   Instruct your employer to deduct your nominated salary sacrifice amount from your regular pay. Once it’s set up, the nominated amount will automatically be deducted from your salary and deposited into your PSSap Ancillary account until you ask them to stop. 

You don’t have to contribute extra to super, however doing so may be a good idea as your retirement savings may need to last you 20 years or longer. Even small regular amounts can have a big impact on your retirement over a long investment period. Contributing members can make:

Additional personal contributions

These are contributions made from your after tax income. Additional personal contributions may be eligible for a co contribution. Please note that contribution caps apply - if you exceed the cap, you may have to pay extra tax. Please refer to the Australian Tax Office website for more information on co-contributions and contribution caps.

There are four ways you can make additional personal contributions.

BPAY

BPAY is good for contributing lump sums or adding extra to your super every now and then.

Login to PSSap Member Online, click on ‘contributions’ and follow the prompts to generate your BPAY and customer reference number.

Once you have obtained your customer reference number, you can make a payment online by logging into your financial institution account.

Important note for BPAY or EFT Payments

We recommend that you BPay or EFT your contribution to us prior to 25 June to allow time for bank transfers and processing of the allocation into your account prior to 30 June.

When you send a personal contribution to us, your funds are first receipted to our fund bank account. This is the date reported to the ATO as funds being received. However, processing and applying the funds into your account will generally happen the following business day. 

E.g. You transfer a contribution to your account on 29 June 2020; we receive it into our fund bank account on 30 June 2020. The date reported to the ATO will be 30 June 2020. However, those funds may not be allocated to your account until 1 July 2020. 

In this case, your personal contribution will not show on your 2019-20 annual statement. However, for tax purposes (e.g. claiming deductions for personal super contributions) it will relate to the 2019-20 financial year. 

If you are unsure of the date the funds were received by us, please call us and we will be able to clarify.

Employer

Set up an arrangement through your employer to contribute regular amounts to super. It can be easier to add small amounts regularly than to save larger once-off amounts.

Ask your employer to deduct super contributions from your after tax salary. Simply contact your personnel section or payroll department. If you wish to contribute before tax amounts to super each pay period, ask about your salary sacrifice options.

Cheque or money order

Send your payment to PSSap using our address details on the contact us page. Please remember to also provide your full name and membership number.

From your Raiz account

Raiz (formerly Acorns) allows members to round up their spending and save small amounts. You can make a contribution from your Raiz account directly to PSSap via the Raiz app.

For further information, visit the Raiz website. The Raiz Invest Australia Fund (Raiz) is offered by Instreet Investment Limited (ABN 44 128 813 816, AFSL 434776). You should consider the product disclosure statement for Raiz, including information about fees and risks, before making a decision to invest in it.

Claiming tax deductions

You may be able to claim a tax deduction for personal (after-tax) contributions made into your PSSap account. Any amounts claimed as a tax deduction will have 15% tax deducted and be counted towards your concessional (before-tax) contribution cap. 

For further information about personal after-tax contributions refer to the Australian Tax Office website or learn more on our tax deductions page.

Salary sacrifice contributions

Salary sacrifice payments are before tax contributions which are taxed at 15% on entry to your account.

What are the benefits of salary sacrificing?

Salary sacrifice payments are before tax contributions which are taxed at 15% on entry to your account. This means that you could pay less tax on salary sacrifice contributions than you would pay if you took that same amount as ordinary income.

Does it mean I get paid less each fortnight?

If you salary sacrifice super contributions you will have less take home pay each fortnight. However, this may be a tax effective way to save for your retirement if your personal tax rate is greater than 15% as the amount going into your super may be more than the amount your take home pay is reduced by.

The amount you decide to contribute is entirely up to you, so you can make sure it’s affordable and within your budget.

Things you need to know

  • The higher your income tax rate, the more benefit you get. The benefits for those earning less than $37,000 per year are limited.
  • There is a cap on before-tax super contributions. See more information on contribution caps via the Australian Tax Office website.
  • Your employer may also have a cap on the amount you are allowed to salary sacrifice. Be sure not to exceed this amount.
  • You should talk to your employer to make sure that you understand whether salary sacrificing amounts into super will impact on any other element of your remuneration.
  • Contributions into super generally must remain within super until you retire and reach preservation age, so you need to weigh up the costs and benefits of salary sacrifice, taking into account your objectives, financial situation and needs, before making any financial decisions regarding your super.

How do I set it up?

Most employers allow salary sacrificing, but it’s best to confirm with your payroll or personnel section. You should keep in mind that it may be handled via a third party arrangement, not your employer.

If salary sacrificing is an option, you can instruct your employer or relevant third party to deduct your nominated salary sacrifice amount from your regular pay. Once it’s set up, the nominated amount will automatically be deducted from your salary and deposited into your PSSap account until you ask them to stop.

Spouse contributions

Additional payments can be made into your account by your spouse, including a de facto partner. These contributions are called ‘eligible spouse contributions’. Your spouse does not have to be a member of PSSap to make contributions to your account; they can make contributions for you directly to your account through PSSap Member Online.

You must be a low income earner for any tax offsets to be applicable. Further eligibility requirements apply and you should visit the Australian Tax Office website for more information.

Co-contribution

If you are a low-to-middle income earner, the Australian Government may help to boost your super savings through the super co-contribution payment.

Eligible individuals can take advantage of the co-contribution payment by making personal super contributions to their super fund. The government will then match your contributions up to a maximum amount.

Eligibility requirements include earning below a maximum income threshold, making a personal contribution to super in the income year and lodging your tax return.

Any co-contribution amount paid into your account will be shown on your annual benefit statement for the relevant financial year.

For more information about the super co-contribution payment, including eligibility and how much you might get, visit the Australian Taxation Office website.

Low income contributions

Low income contributions are made by the government to the superannuation funds of low income earners. The purpose of these contributions is to ‘refund’ the 15% tax paid on the concessional (before-tax) super contributions you or your employer pays into your super fund.

This contribution is called a low income superannuation tax offset (LISTO).

The maximum payment you can receive from LISTO for a financial year is $500, and the minimum is $10. If you're eligible for less than $10, the ATO will round this up to $10.

For more information visit the Australian Taxation Office website.

Making the moves that count

Helping you plan your financial future

At CSC, we believe great financial planning is a mix of real listening, decades of experience and making it simple to get the advice you need, how you need it.

Learn more

Next I'd like to...

Factsheets and publications

Understand the ins and outs of super with our simple factsheets and publications.

Learn more

Product Disclosure Statement

The PDS provides important information about the fees, benefits, risk and cost of investing your super.

Learn more

Tools

Helpful tools so you can make the right choice for you

Learn more