Contributions to Super
By John Grocke
Contributions to super are a great way to add to your savings for the longer term.
There are two types of contributions; either ‘before tax’ and ‘after tax’.
Before tax contributions include employer contributions; salary sacrifice or if self-employed personal deductible contributions – maximum depends on age – < age 49 = $30,000; 49 or more = $35,000 (both include employer contributions).
After tax contributions can come from savings accrued in the bank; a bequest received from an estate or a windfall of money from a lottery – maximum within a financial year = $180,000 or if you are < age 65 you can do up to 3 years at once = $540,000.
These are treated differently from a tax viewpoint – before tax contributions are taxed when they land in the super account at 15%; after tax contributions are not taxed as when they land in the fund.