What You Need to Know Regarding Superannuation Taxes

In order to encourage people to save for retirement, the Government has provided many tax concessions to superannuation. To start with, pre-tax contributions to super are taxed at the concessional rate of 15%, rather than your marginal tax rate, which could be as high as 46.5% (including Medicare Levy). Additionally any income earned on your investment is also taxed at just 15% rather than your marginal tax rate, allowing you to boost super tax-effectively. Better yet, once you reach 60, so long as you’re retired you can withdraw this money from super tax-free as either a lump sum or pension.

There are also many other tax concessions available, depending on your unique circumstances so talk to a financial adviser to make sure you are taking advantage of your opportunities.