Tax and Structures

Superannuation taxation

Assessable income

The assessable income of a super fund generally includes all types of income from its investments such as interest, dividends, rent and capital gains.

However, it also includes concessional contributions received on behalf of its members, which is effectively any contribution the person or employer making the contribution claims as a tax deduction.

This is why they are taxable contributions and therefore incur contributions tax of 15% (increasing to 30% for individuals with income greater than $250,000).

Some of the main types of concessional contributions are:

  • where your employer contributes 10% of your salary to super on your behalf (known as the compulsory super guarantee contribution)
  • where your employer contributes additional amounts to super on your behalf (known as salary sacrifice or voluntary employer contributions)
  • where you contribute as a self-employed person or you are aged under 75 years old – including if you are aged 67 to 74 years and meet the work test (having worked at least 40 hours during a consecutive 30-day period during the relevant financial year) and claim a tax deduction for a personal superannuation contribution you make.