Putting some of your take-home pay into your super (i.e.. making an after-tax contribution ) can be a tax-efficient way to save – as long as you’re prepared to put it away until retirement.
You pay only 15% tax on earnings on these funds, as opposed to paying your marginal tax rate on the earnings outside super.
The Government has announced that if you earn under $46,920 in 2012/13 and use this strategy, you may also be eligible for the Government co-contribution in respect of after-tax contributions up to $500.
If you’re self-employed, you can generally claim your super contributions as a tax deduction.
For information on your personal tax situation, please seek the advice of a qualified tax professional.
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