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Guide to superannuation for individuals

 
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Other contributions

You can contribute to your own super and you may be eligible for government contributions.

Concessional (before-tax) contributions

Concessional contributions are sometimes called 'before-tax contributions' because the contributor can usually claim an income tax deduction. They include:

  • compulsory super guarantee contributions made by your employer
  • salary sacrifice contributions
  • any personal contributions you notify your fund you intend to claim as an income tax deduction.

Concessional contributions are taxed 15% in the super fund, but if you exceed your concessional contributions cap an extra tax of 31.5% applies to the excess.

Non-concessional (after-tax) contributions

Non-concessional contributions are generally the after-tax contributions you make to a super fund. They include personal contributions you make from your after-tax pay. They aren't usually taxed in the super fund, but if you exceed your non-concessional contributions cap a tax of 46.5% applies to the excess.

Personal contributions

You can boost your super by adding your own contributions to any contributions an employer may be making for you. Personal contributions are non-concessional or 'after-tax' contributions unless you have claimed a tax deduction for them. If you're an employee you generally can't claim a tax deduction for personal super contributions, though you may be eligible for a super co-contribution.

Government super contributions

You may be eligible for either the super co-contribution or the low income super contribution or both, which means the Australian Government also contributes to your super account.

Salary sacrificing super contributions

You can enter an agreement with your employer to have some of your salary or wages paid into your super fund instead of to you. This may have tax advantages for you because the standard 15% tax on super is probably less than the tax you would have paid if you had taken the money as salary.

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Sections within Other contributions

Last Modified: Tuesday, 29 January 2013

 
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