Superannuation
Contributing to Superannuation
Concessional v Non-Concessional Contributions
Option 2 – contribute to super after tax
- A total of $1,200 is contributed by you to super from your own after tax savings.
- Your gross salary will be $40,000. Tax payable on this amount is $4,547 (plus Medicare)
- No tax is applicable on the contribution to super.
- If you contribute $1,200 to super out of your own cash you would get a government co-contribution of $423.31 (giving total contributions of $1,623.31).
As you can see, salary sacrificing the contribution provides a total tax saving of $311.30, not allowing for any Medicare levy payable or tax offsets. However, by making a personal contribution you are eligible for the Government co-contribution which can provide a higher benefit at lower income levels (in this case a higher benefit of $112.16). The comparison will be different for each person and you do need to check your own situation.
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