Types of SMSF Contributions Explained

Concessional contributions are made into your super fund before tax, and include: employer contributions, such as. compulsory employer contributions. any additional concessional contributions your employer makes. salary sacrifice payments made to your super fund.

Non-concessional contributions are made into your super fund from after-tax income. These contributions are not taxed in your super fund.

Member versus Employer Contributions

Personal super contributions are the amounts you contribute to your super fund from your after-tax income (that is, from your take-home pay).

Employer contributions are the amounts you contribute to your super fund from before-tax income (being super guarantee and salary sacrifice arrangements).

A salary sacrifice arrangement is also commonly referred to as salary packaging or total remuneration packaging. It is an arrangement between an employer and an employee, where the employee agrees to forgo part of their future entitlement to salary or wages in return for increased superannuation contributions.

The low income super tax offset (LISTO) is a government superannuation payment of up to $500 to help low-income earners save for retirement. Further conditions apply.

If you earn $37,000 or less a year, you may be eligible to receive a LISTO payment. This is usually paid directly into your super fund.

Super co-contributions help eligible people boost their retirement savings. If you’re a low or middle-income earner and make personal (after-tax) contributions to your super fund, the government may also make a contribution (called a co-contribution) up to a maximum amount of $500.

The amount of government co-contribution you receive depends on your income and how much you contribute. Further conditions apply.

In-specie contributions are contributions of assets into superannuation that are not cash. This could be shares, units, collectibles and other items. These could be either concessional or non-concessional contributions.

Small Business CGT concessions

In addition to the capital gains tax (CGT) exemptions and rollovers available more widely, there are four concessions that allow you to disregard or defer some or all of a capital gain from an active asset used in a small business – two of which can be put into superannuation.

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