Concessional v Non-Concessional Contributions

Option 1 - salary sacrifice to super

• Your employer increases your super contributions by $5,000 for the year.
• Accordingly, your gross cash salary is reduced from $50,000 pa to $45,000 pa thereby reducing tax payable on your income from $5,520 to $4,020 (plus Medicare), a reduction of $1,500.
• Tax of 15% will apply to the $5,000 concessional contributions made to your superannuation fund, totalling $750.00. This will leave total net contributions of $4,250 ($5,000 - $750).