What percentage should I contribute to super?

What percentage should I contribute to super?

10%
Your employer must pay at least 10% of your ‘ordinary time earnings’ into your super account. The minimum amount that your employer must pay into your superannuation fund. It is currently 10% of your gross salary. Ordinary time earnings are what you earn for your ordinary hours of work.

What is the maximum super contribution for 2020?

Maximum super contribution base

Income year Income per quarter
2021–22 $58,920
2020–21 $57,090
2019–20 $55,270
2018–19 $54,030

How much tax can I save by contributing to super?

15%
If you make a personal super contribution, you may be able to claim the contribution as a tax deduction and reduce your assessable income. The contribution will generally be taxed in the fund at the concessional rate of up to 15%¹, instead of your marginal tax rate which could be up to 47%².

What happens if I contribute more than $25 000 to super?

Once the concessional contributions are in your super fund, they are taxed at a rate of 15%. You may need to pay extra tax if you exceed the concessional contribution cap. However, you may pay tax on them if you exceed your non-concessional contribution cap.

Is it better to salary sacrifice super or claim a tax deduction?

Salary sacrifice reduces your taxable income, so you pay less income tax. Only 15% tax is deducted from your salary sacrifice amount compared to the rate you pay on your income, which can be up to 47% (including the Medicare Levy). 2 This can be much lower than the tax on investments outside superannuation.

Should I contribute to super before or after-tax?

Your salary is sacrificed straight into your super, so it’s taken from your gross (before-tax) pay. This means it’ll be taxed at 15%, unless you’ve exceeded the concessional contributions cap.

Is there a limit to how much you can contribute to Super?

Contributions are not subject to the Total Superannuation Balance limit Since 1 July 2017, you cannot make non-concessional (after-tax) contributions to your super account if you have a Total Superannuation Balance (TSB) of $1.6 million or more.

Can a 65 year old contribute to a Super account?

Since 1 July 2018, Australians aged 65 years or older have been able to make a non-concessional (after-tax) contribution into their super account of up to $300,000 from the sale proceeds of their family home if they have owned the property for at least ten years.

Can You downsize your home to contribute to your super account?

For some retirees, selling the family home can also be a great way to release built-up equity and make an extra contribution to their super account. Under the downsizer contribution rules, your eligible contributions are exempt from some of the normal limits and rules, so you can give your super account a welcome boost.

What’s the purpose of the civil service superannuation circular?

The purpose of this Circular is to encourage every civil servant to be pensions aware – that is, to become familiar with his or her own superannuation benefits and the possible options which may apply in relation to improving or transferring those benefits in certain cases. Questions you should ask yourself (and should be able to answer!) 1.

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