There are two types of super contributions:
Concessional contributions: Also known as ‘before-tax’ contributions and include:
- Employer contributions (compulsory 9.5% superannuation guarantee)
- Salary sacrifice
- Personal contributions which you claim a tax deduction for
These contributions are taxed at 15% as they enter the fund.
Non-concessional contributions: Also known as ‘after-tax’ contributions and include:
- Personal contributions you make as a super fund member and don’t claim as a tax deduction in your income tax return. These are often called ‘voluntary’ contributions.
- Spouse contributions are made directly into your spouse’s super account. This can be a tax-effective way for a couple to save for retirement if one partner is only working part-time or has a low income.
These contributions do not incur contribution tax.