Superannuation

Types Of Contributions

Concessional contributions are contributions that are made into your super fund before tax. They are taxed at a rate of 15% in your super fund.

There are three main types of concessional super contributions. These include –

Superannuation guarantee contributions – which are the contributions that your employer is legally required to make for you. Generally, these contributions are equal to 11% of ordinary time earnings (subject to change as per government regulations in future).
Salary sacrifice – where you arrange with your employer to contribute some of your pre-tax salary into super rather than receiving it as take-home pay.
Personal deductible contributions – these are personal contributions you make to super with your take-home pay or other savings, which you claim as a tax deduction to reduce your taxable income.

Non-concessional contributions are made from after-tax income and may include:

Personal contributions where you have not claimed an income tax deduction.
After-tax salary that you have requested your employer to direct into superannuation on your behalf.
Spouse contributions.
Contributions in excess of your capital gains tax (CGT) cap from business assets.
Most transfers from foreign superannuation funds.