Before-tax (concessional) contributions
This is where you choose to ‘sacrifice’ part of your before-tax salary and have it contributed directly into your super account. This is an arrangement you can generally set up through your employer. It's important to check with your employer that before-tax contributions can be made on your behalf.
- Reduced taxable income (as your salary is reduced by the contributions you make directly to super)
- Contributions are taxed at just 15% instead of your marginal tax rate which could be up to 45% (including the Medicare Levy and any relevant Government levies).
If you don’t use the full amount of the concessional contributions cap, you can carry forward your unused cap amount and make additional catch-up contributions to your AustSafe Super account. You must have a Total Superannuation Balance of less than $500,000, and be less than 65. If you are between 65 and 74, you must satisfy the work test before you can make a catch-up contribution.
You can start to carry forward your unused cap amount from 1 July 2018, and make your first catch-up contribution after 1 July 2019. Any unused carry forward amounts will expire after five years.