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.
Personal contribution. An after-tax contribution is also called a ‘personal contribution’ or ‘non-concessional’ contribution. Members and Employers can make personal contributions directly to max via EFT, cheque or direct debit. This might be a one-off payment, or they might want to set up a regular savings plan (for example, monthly contributions).
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 $30,000 per year (or $35,000 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!