Have you thought about boosting your super savings?
For many people, super is the most tax-effective vehicle to invest savings. This is because concessional rates of tax apply to super contributions and investment earnings. Also, and perhaps most importantly, when converted to pension mode in retirement your investment earnings become tax free*.
Below, we have outlined the common contribution types and their annual limits. As well as changes from the Federal Budget applying from 1 July 2021.
*Limits and regulations apply. Please contact us for more information.
Concessional Contributions are made to your super fund from pre-tax income.
As a result, you will be charged 15% contributions tax instead of your marginal income tax rate.
Non-Concessional Contributions are made from your after-tax funds directly to your superannuation fund. If no tax deduction is claimed, no contributions tax is charged.
Secondly, non-concessional contributions form part of the tax-free component of your super and will be tax-free upon withdrawal.
Did you know?
There are special contributions types, in addition to the above limits, which may apply to:
If you would like further information on these special contributions or one of our experts to develop a super contribution & investment strategy tailored to your goals and risk appetite, please contact us.