Concessional contributions are contributions made with pre-tax income. They are called concessional contributions because income directed to superannuation is taxed at a concessional rate – generally a lower rate than other income.
Concessional contributions are usually made by employers, on an employee’s behalf.
Contributions paid by your employer on your behalf. These may be paid at:
- the minimum rate set by the Superannuation Guarantee (SG)
- the minimum rate set by an industrial award or agreement, or
- a higher than minimum rate set by your employer.
Additional contributions you make from your pre-tax income to your super account by entering into a salary sacrifice agreement with your employer.
Voluntary contributions you make to your super that you claim a tax deduction for if you are self-employed.
Directing some of your employer or salary sacrifice contributions to your spouse's account. These contributions count toward your concessional cap.
Low income super contribution
A government contribution of up to $500 paid to your super if you earn $37,000 or less in a financial year and make concessional contributions to a complying super fund.
You cannot receive the Low Income Super Contribution if you have not provided your Tax File Number (TFN) to your super fund.