When looking to build an appropriate super nest egg, it’s important to understand factors such as time along with contributions, returns, and fees can have an impact on your super balance come retirement.
In terms of contributions, most employees receive employer Super Guarantee contributions, which is currently set at 9.5% of an employee’s ordinary time earnings base—up to the maximum super contributions base.
These employer Super Guarantee contributions are a type of concessional contribution.
A concessional contribution generally refers to a contribution which can be claimed as a tax deduction by the contributor e.g. employer contributions (including salary sacrifice), and personal deductible contributions.
In this animation, we illustrate some of the finer details of concessional contributions, inclusive of contribution eligibility, contributions tax (with reference also to Division 293 tax), and contributions cap.