Concessional contributions are generally taxed in the super fund at up to 15%view disclaimer1, instead of your marginal tax rate of up to a maximum of 47%view disclaimer2.
There are three main types of concessional super contributions. These include:
Disclaimer1. If you earn up to $37,000 a year (2023/24) you may be eligible to receive a Low Income Super Tax Offset (LISTO) payment of up to $500. Individuals with income from certain sources above $250,000 in 2023/24 will pay an additional 15% tax on concessional super contributions within the cap. However, concessional contributions are generally still beneficial, as the tax payable on the concessional contribution is still less than the marginal tax rate of 47% (including Medicare levy) that is paid by people earning this level of taxable income.
Disclaimer2. Includes Medicare levy.
Any advice and information on this website is general only, and has been prepared without taking into account your particular circumstances and needs. Before acting on any advice on this website you should assess or seek advice on whether it is appropriate for your needs, financial situation and investment objectives.
Any general tax information on this website is intended as a guide only and is based on our general understanding of taxation laws. It is not intended to be a substitute for specialised taxation advice or an assessment of your liabilities, obligations or claim entitlements that arise, or could arise, under taxation law, and we recommend you consult with a registered tax agent.
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