One of the most compelling reasons to save money in your super fund is its tax-effectiveness.
Here we outline some key ways you can take advantage of the allowances to make your super savings work harder:
Contributions caps. Employer and salary sacrificed contributions are generally taxed at 15%, up to $25,000 a year.
Low income earners. If you earn $37,000 or less, the tax you have paid on your super contributions will automatically be added back into your super account through the Low Income Superannuation Tax Offset.
High income earners. If your combined income and super contributions exceed $250,000, you will pay more tax on your super contributions.
The co-contribution scheme. Personal after-tax contributions and those received under the government’s co-contribution scheme are not taxed.
Rolling over super. In most cases when money is transferred from one super fund to another, no tax is payable.