Super is tax smart
As an incentive to help Australians save for retirement, super receives tax concessions. But there are limits on the amount of contributions you can make to your super account each year that attract the concessional tax treatment of 15%. These limits are known as contribution caps.
There are different contribution caps for before-tax contributions and after-tax contributions.
Before-tax contributions are capped at $25,000 a year
These include the compulsory contributions your employer makes (usually 9.5% of your wages) and any other before tax money you put in (usually through salary sacrifice).
After-tax contributions are capped at $100,000 a year OR $300,000 over a three year period (if you’re under 65)
This is money that you put into your super, which you have already paid tax on. This could be through a regular after-tax contribution you have arranged with your employer, or any one-off payments you’ve made to your super.