Concessional v Non-Concessional Contributions

Now let’s look at a comparison between salary sacrificing to super and making a non-concessional contribution (after tax) to super.

Assume you earn $50,000 pa (equals $44,212 after paying $5,788 in tax, ignoring Medicare) and you wish to contribute an additional $5000 p.a. to your super account.

Your options are to either have salary sacrifice contributions made by your employer to super (i.e. redirect money from your gross salary into super before tax is applied) or contribute to super from your after-tax savings. Which is the better option?