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Concessional contributions

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Concessional (pre-tax) contributions can be a powerful way to boost your retirement savings.

How does it work?

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.

What are the benefits?

  • Grow your super.
  • Pay less tax on your salary or other taxable income.

Types of concessional contributions

There are three main types of concessional super contributions. These include:

  • Superannuation guarantee contributions –  generally 9.5% of ordinary time earnings if you are an employee.
  • Salary sacrifice – where you arrange with your employer to contribute some of your pre-tax salary into super rather than receiving it as take-home pay, and
  • Personal deductible contributions – these are personal contributions you claim as a tax deduction to reduce your taxable income.

Important things to consider

Disclaimer1. Individuals with income above $250,000 in 2019/20 will pay an additional 15% tax on concessional super contributions within the cap.

Disclaimer2. Includes Medicare levy.

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General advice and information only

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.

Tax disclaimer

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.