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Ancillary Contributions

Follow the links below to access information about Ancillary Benefits for Members of DFRDB.

If you are a current DFRDB contributor you may also choose to make voluntary superannuation contributions to MilitarySuper.

With effect from 1 August 2005, the MilitarySuper rules were changed to allow for a range of voluntary ancillary contributions to be made into the MilitarySuper Fund by DFRDB contributors.

Should you choose to make voluntary ancillary contributions to the MilitarySuper Fund, you do not become a Member of the MilitarySuper Scheme, but an ancillary benefit in the MilitarySuper Scheme will result from your ancillary contributions.

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. When they become payable they do not form part of the DFRDB benefit. The types of ancillary contributions offered by MilitarySuper are described on the MilitarySuper website.

Who can make ancillary contributions?

To be eligible to make ancillary contributions you must be a contributing DFRDB Member.

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.

Contribution limits

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

The limit across all your superannuation funds is either:

  • maximum $150,000 per year;

    or

  • maximum $450,000 over 3 years for Members under 65.

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. 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 contributions if we do not have your Tax File Number.

For more information, please see the fact sheet on Tax File Numbers (PDF 291KB)

Claiming a Deceased Member's ancillary benefit

For information on claiming a deceased Member’s ancillary benefit please see Death Benefits in Service and Death Benefits After Service.

Investment choice

Your ancillary contributions plus investment returns make up your Ancillary Benefit. MilitarySuper (www.militarysuper.gov.au) offers a range of investment strategies in which you can choose how to invest your Ancillary Benefit (including any co-contribution).

Family Law and Ancillary Benefits

Currently the legislation does not allow your Ancillary Benefits to be valued and considered as part of your benefit if a splitting court order or superannuation agreement was to be served on the Trustee resulting from your separation from your spouse.

How is an Ancillary Benefit paid?

When an Ancillary Benefit is payable, it will be paid as a lump sum only.

When can you claim your Ancillary Benefits?

You can claim your benefit either:

  • when you have reached preservation age and permanently retired from the workforce (regardless of when your MilitarySuper or DFRDB benefit becomes payable)
  • when you reach 60 and you have ceased employment or change employers
  • when you reach 65 years of age if the Board is satisfied that you have met the requirement of total and permanent incapacity
  • if the Board is satisfied that you meet the requirements for severe financial hardship

    or

  • if the Australian Prudential Regulation Authority (APRA) approves payment on compassionate grounds.

Your benefit will also be payable to an eligible spouse, eligible child, or children, or your Estate in the event of your death.

Rolling over your Ancillary Benefits

You can rollover your Ancillary Benefit to another regulated superannuation Fund, RSA or Approved Deposit Fund at any time. However, you will not be able to claim the benefit from that rollover institution until the benefit becomes payable under the rules of that Fund.

Fact Sheets

Please see the ancillary contributions forms and fact sheets below.

Forms

More Information

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

Publications

PDFs can be viewed and printed using the FREE Adobe Acrobat Reader.