Contributions to Super
How super contributions are treated depends on whether they’re before-tax (concessional) or after-tax (non-concessional).
The tax paid on your super contributions generally depends on whether:
- the contributions are out of your before-tax or post-tax income
- you exceed the concessional or non-concessional contribution caps
- you’re a high-income earner.
Contribution caps are the limits on how much you can pay into your super fund each financial year without having to pay extra tax. If you have more than one super fund, all your contributions are added up and count towards your caps.
Personal Contributions to Super
You can boost your super by adding your own personal contributions, which are the amounts you contribute directly to your super fund.
If you claim a tax deduction for them, they’re concessional contributions and are effectively from your pre-tax income. They are taxed in the fund at a rate of 15%.
If you don’t claim a tax deduction for them, they’re non-concessional contributions and are from your after-tax income or savings. They are not further taxed.
Personal contributions:
- are in addition to any compulsory super contributions your employer makes on your behalf
- do not include super contributions made through a salary-sacrifice arrangement.
Personal contributions are subject to the contributions caps that apply to concessional and non-concessional contributions.
If you have any questions about Super don’t hesitate to get in contact with us
