What are the different types of contributions?
There are a number of ways you can contribute to super. Super guarantee All employers are required to provide minimum super cover for eligible employees known as the super guarantee (SG). The current SG level is nine per cent of your gross salary – for some industrial awards this level may be higher. If you’re employed full-time, part-time or on a casual basis and earn more than $450 a month your employer must make SG contributions on your behalf (some exceptions apply). Salary sacrificing This is a strategy where you contribute part of your pre-tax income to super. Salary sacrifice contributions usually attract a tax of just 15 per cent, about half the average marginal tax rate. Ask your employer if you can make salary sacrifice contributions to your super fund. You may be able to contribute one-off payments like your annual bonus if you make prior arrangements. Continuing to make salary sacrifice contributions while using a transition to retirement income stream can be a tax-effectiv
