What is the difference between an after tax contribution to superannuation and a before tax (salary sacrifice) contribution to super?
An after tax contribution (also known as a non-concessional contribution) is one you have paid from your net salary. Your gross salary will have been taxed at the appropriate rate and your nominated contribution will then have been deducted from what is left. As you have already been fully taxed on this money it will not be taxed again by the superannuation system, either on entry or exit. Any earnings on it will however be subject to taxation in the Fund and assessable for taxation purposes on exit. It is considered a personal contribution for purposes of attracting a Government co-contribution, providing other criteria are met. A before tax or salary sacrifice contribution (also known as a concessional contribution) is one taken from your gross salary. This option is only available if your employer agrees to it. The chosen contribution is taken from your gross salary and you are only taxed on what is left. A contribution made in this way is classed as an employer contribution. 15% ta
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