UA is committed to collaborating with and assisting our clients to achieve and surpass their financial goals. If you're considering your next move, be sure to contact us today!
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Superannuation remains one of the most effective long-term wealth-building structures available to Australians. Yet, many investors underutilise one of its most powerful features: strategic contributions.
Understanding the role of both concessional (pre-tax) and non-concessional (after-tax) contributions can make a meaningful difference to your retirement outcomes.
Concessional contributions include employer Super Guarantee payments, salary sacrifice, and personal contributions that are claimed as a tax deduction.
The key benefit is simple:
These contributions are generally taxed at 15% within super, which is often significantly lower than your marginal tax rate.
This creates two advantages:
For individuals in higher tax brackets, this can be a particularly effective strategy to build retirement savings in a tax-efficient environment.
Non-concessional contributions are made from after-tax income and are not taxed when entering your super fund.
While they don’t provide an upfront tax deduction, they offer a different advantage:
These contributions are especially useful for individuals who:
Over time, the combination of concessional and non-concessional contributions can significantly enhance your retirement position. The earlier and more consistently these strategies are applied, the greater the potential benefit from compounding and tax efficiency.
However, contribution caps, eligibility rules, and individual circumstances all play an important role in determining the right approach. What works well for one person may not be appropriate for another.
If building your superannuation in a structured, tax-effective way is important to you, we encourage you to have a conversation with our team.
If this is important to you, please speak with one of our advisers.
Important Information: This content is issued by Mason Stevens Asset Management Pty Limited, ABN 92 141 447 654 (MSAM).MSAM is a corporate authorised representative (CAR 461312) of Mason Stevens Limited, ABN 91 141 447207, AFSL 351578 (Mason Stevens). The information provided is of a general nature only and does not have regard to any individual’s personal objectives, financial situation, or needs. You should consider this information, along with all your other investments and strategies when assessing the appropriateness of the information to your individual circumstances. MSAM encourages seeking specific professional advice from a licensed financial adviser before making a decision to transact in relation to any investment, security, or strategy. Investment in securities including derivatives involves risks. Securities by nature will rise and fall and therefore past performance is not a reliable indicator of future performance. MSAM and its associates and their respective directors and other staff each declare that they may hold interests in securities and/or earn fees or other benefits from transactions arising as a result of information contained inthis communication. MSAM ensures that the information provided in this communication is as accurate and complete as possible but does not warrant itsaccuracy or reliability. References made to any third party, or their data is based on information that Mason Stevens believes to be true and accurate asat the date of this communication but is without independent verification. Opinions and or information may change without notice and Mason Stevens isnot obliged to update you if the information changes. Mason Stevens and its associated companies, authorised representatives, agents, and employeesexclude to the full extent by law, liability of whatever kind, including negligence, contract, fiduciary duties or otherwise, to investors or anyone else inrespect of any loss or damage, including indirect or consequential loss or damage, foreseeable or not, arising from or in connection with this information.
UA is committed to collaborating with and assisting our clients to achieve and surpass their financial goals. If you're considering your next move, be sure to contact us today!
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