What are super contributions?

A super contribution is money that’s deposited into your super account, either as an ongoing payment or as a one-off. Usually made by you or your employer.

For more information on super contributions, please go to
https://www.amp.com.au/superannuation/super-contributions/guide

Get more insights about growing your super and investing your money: https://www.amp.com.au/insights/grow-my-wealth

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Transcript:

We hear the words “super contributions” a lot, but what exactly are they? A super contribution is an amount of money that is deposited into your superannuation account, either as an ongoing payment or as a one-off. Usually made by you or your employer.

There are two broad types of super contributions:

• The concessional contribution, also known as a before-tax contribution, is typically paid into your super account before any income tax is taken out, and includes super payments your employer makes, such as super guarantee and salary sacrifice contributions. As well as any personal payments you make into your super that you choose to claim as a tax-deduction.
• Then there’s the non-concessional contribution, which is also known as an after-tax contribution, because tax has already been paid on this money and includes any personal payments you have not claimed as a tax deduction.
The good news is it doesn’t matter how you contribute to your super, it will help grow your retirement savings. Now here are a few important things you need to be aware of before making contributions into your super:
• there are limits to how much you can add to your super every year. These are called contribution caps – and if you exceed these caps, additional tax and penalties may apply.
• each type of contribution is taxed differently depending on your circumstance.
• typically you won’t be able to access amounts you’ve contributed to super until you reach a certain age and retire.

To learn more about super contributions and how they work contact your super fund or visit the AMP or ATO websites.

Original Author: Produced by AMP and published on 06/12/2021 Source