One of the reasons super is such a great way of saving is because it's taxed much lower than money outside super (in most cases), with income taxed at a rate of 15% or less!
Tax Rebates & other incentives
Salary Sacrifice. You can ask your employer to pay extra money from your salary into super.Your taxable income is reduced by the contribution amount, which means you pay less tax at the end of the year. The higher your marginal income tax rate, the more you could save.
Government co-contribution. This is like a bonus contribution payment made by the Commonwealth Government into your super account to encourage you to save for retirement. If your total income is under $61,920 you could get up to $1,500 paid straight into you super. All you do is make a voluntary after-tax contribution sometime during the year. When you lodge your annual tax return, we use your Tax File Number to get your bonus dollars from the ATO and its automatically put in your account. That's like free money!
Self-Employed. You can claim a tax deduction on contributions to your super. These contributions will be taxed concessionally at 15% inside the fund. This is limited to $50,000 per year (or $100,000 per year if you're over 50). More info
Spouse Contributions. If your spouse earns less than $13,800, you could be entitled to a tax rebate of up to $540 per year if you make a contribution for them. Not bad!
