Contributing to Superannuation

Concessional v Non-Concessional Contributions

Now let’s look at a comparison between salary sacrificing to super and making a non-concessional contribution (after tax) to super.

Assume you earn $40,000 pa (equals $35,453 after paying $4,547 in tax, ignoring Medicare) and you wish to contribute $100 per month after tax to super.

Your options are to either have salary sacrifice contributions made by your employer to super (i.e. redirect money from your gross salary into super before tax is applied) or contribute to super from your after tax savings. What is the better option?