NSW Superannuation Voluntary Contributions - Should I Pay Tax?

[Samuel Martin]

Should I be paying this tax if I'm not making extra voluntary contributions to my superannuation?

I could swear I'm only supposed to be paying the base rate of my salary into my super, which I think is about 9.5% of my salary. I did a quick calculation and it looks like that's what's being paid into my super account, however I'm paying between $135 - $145 every four months in contributions tax.

If I'm not supposed to be paying this tax, what are my chances of getting back the tax I've already paid?

 

[Smiley]

It sounds right.

9.5% of your salary into super means 9.5% of your salary is contributed into your super as an "employer contribution" otherwise known as SG (super guarantee) SG is taxed marginally at 15%.

If the money was paid directly to you as opposed to into super, it would be taxed at your marginal rate, anywhere from 32-42% approximately.

Essentially, you are saving money tax wise as the rate of tax is lower.

 

[Samuel Martin]

Thanks for your help.

I checked with my super fund and the staff there told me the same thing you did. I wasn't very knowledgeable about super tax and got confused, but it I get it now.

Thanks again.