Concessional Super Contributions Cap: Who Qualifies and What You Get
Learn how to use concessional super contributions to reduce your taxable income through tax-advantaged retirement savings.
This scheme allows you to make contributions to your superannuation that are taxed at a lower rate than your regular income.
Who it's for
This is for individuals who want to reduce their overall taxable income while building up their retirement savings.
What you get
You can make tax-advantaged contributions up to a specific limit each financial year. This allows you to move money into your superannuation under a more favorable tax arrangement than standard salary payments.
What it costs you
To take advantage of this, you generally need to set up a salary sacrifice arrangement with your employer. This means a portion of your pay is diverted directly into your super before you receive it.
The catch to know
It is important to stay within the annual limit. If your total contributions exceed the cap, you will likely have to pay extra tax on the excess amount at your individual marginal tax rate.
How to apply
- Determine how much you want to contribute each year.
- Contact your employer to discuss a salary sacrifice arrangement.
- Monitor your total contributions to ensure you do not exceed the yearly cap.