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 (non-concessional contribution).
  • Your gross salary will be $50,000. Tax payable on this amount is $6,717 (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 be eligible for a government co-contribution of $281.52 (giving total contributions of $1,481.52). 

As you can see, salary sacrificing the contribution provides a total tax saving of $311.15, 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 or lower benefit depending on the level of taxable income (in this case an amount of $281.52 or a lower benefit of just $29.78). The comparison will be different for each person, and you do need to check your own situation.