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Ancillary Benefits

Introduction of Ancillary Benefit Package

The MSB Board approved the introduction of an Ancillary Benefit package for MilitarySuper from 1 August 2005. The Ancillary Benefit provisions apply to current contributors to MilitarySuper and, for equity purposes, current contributors to the DFRDB Scheme.

Ancillary contributions form part of a separate benefit called an Ancillary Benefit. They accrue as a separate accumulation interest within MilitarySuper and fluctuate in line with return achieved by the Fund. Ancillary contributions do not attract or add to the Employer Benefit.  

Contribution Limits

There is a limit on the amount of personal Member contributions (called non-concessional contributions)) you can pay into your superannuation without incurring additional tax because they have been paid from after tax earnings and you have not been able to claim a tax deduction on them. The limit across all your superannuation Funds is:

though industry wide taxation rules permit you to pay the full amount of $450,000 in one year and not contribute in the following two years you need to be aware, so far as your MilitarySuper membership is concerned, that unless you have reached your lump sum or asset class allow the pension maximum benefit limit (MBL) and ceased contributing to MilitarySuper you must contribute a minimum of 5% of your salary each fortnight. Any personal contributions made over the limits will be taxed at the top marginal tax rate (plus Medicare levy) by the Australian Taxation Office (ATO) on an annual basis. The limits will be indexed periodically.

Tax File Numbers

New rules apply to the use of Tax File Numbers. MilitarySuper cannot accept your personal Member contribution if we do not have your Tax File Number. For more information, please see the Australian Tax Office website.

What are ancillary contributions?

The term 'ancillary contributions' describes a range of voluntary contributions or transfers you can make to MilitarySuper for yourself or on behalf of your spouse. There are five types of ancillary contributions offered by MilitarySuper. These five types are described in detail on the following pages.

New rules apply to the use of Tax File Numbers. MilitarySuper cannot accept some ancillary contributions if we do not have your Tax File Number. For more information, please see the Australian Tax Office website.

Who can make ancillary contributions?

To be eligible to make ancillary contributions you must be a contributing Member of MilitarySuper. That is, ancillary contributions cannot be paid by preserved benefit members.

What happens if you or your employer contributes over the limit?

The Australian Taxation Office (ATO) will send you an assessment and a release authority form.

How will I pay the assessment?

You can either make a direct payment to the ATO, submit an ATO release authority form to another superannuation Fund, if you have or, subject to availability, your MilitarySuper ancillary contributions can be used to discharge any excess contributions tax. Your mandatory personal contributions and your Employer Benefit comprise a defined benefit and the taxation legislation precludes such amounts being used to discharge a release authority.

Claiming a Deceased Member's Benefit

For more information on claiming a deceased Member's benefit please see Deceased Member's Benefits.

Fact Sheets

The five types of ancillary contributions offered by MilitarySuper are described in the fact sheets below.

Forms

More Information

Links

Customer Service Centre

For information about your superannuation entitlement, the payment of your benefit or about any other superannuation related matter, see the Customer Service Centre.

Publications

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