If you have money outside super that you want to invest for retirement, you may want to make an after-tax super contribution.
You have surplus cashflow or savings.
Anika is 50 years of age and has $50,000 in a bank account that she would like to invest for her retirement. She earns $70,000 p.a., so her marginal tax rate is 34.5%1.
If she contributes the money to super, investment earnings will be taxed in the fund at a maximum rate of 15%. That’s a tax saving of 19.5%.
Paying less tax on earnings in super will help build her retirement nest egg and improve her lifestyle when she stops working.
1. 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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