| Contribution method | Definition | Is contribution taxed? |
|---|---|---|
| Employer | This is the most common form of superannuation contribution. Employers contribute a minimum of 9% of an employee's pay. | Yes, at 15%. |
| Self employed | By contributing into superannuation, you can build savings in a tax-effective manner. You also may be entitled to a tax deduction through your personal income tax return. | Yes, at 15%. |
| Salary sacrifice | Salary sacrificing may help you make tax effective contributions. With salary sacrificing, you forgo part of your salary in return for additional superannuation contributions that your employer makes on your behalf. People on the highest marginal tax rate can generally maximise the advantages of this strategy. | No |
| CGT contribution | If you have owned a business that meets certain requirements, you may be eligible for a tax deduction resulting from the sale of the business. | No |
| Personal contributions (non concessional) | You may like to consider making personal contributions to a super fund from after-tax earnings to help increase your retirement benefits. There are limitations on the amount that you can contribute as undeducted contributions. | No |
| Government co-contribution | The co-contribution is a payment made by the government into the superannuation accounts of eligible low-income earners, applicable when they make a contribution after tax (undeducted) into a complying fund. | No |
| Spouse co-contribution | You can claim an 18% tax offset on superannuation contributions of up to $3000 with after tax contributions (undeducted) made on behalf of your spouse, up to a maximum of $540 per annum. | No |
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