I had no idea where my lost super was or the names of the funds. I just new it was scattered everywhere and I should definitely have more than $3,000 in my super. Australian Super Finder found all 7 of my funds and now my balance is almost $50,000. Thank you so much for getting my super back on track. ? Leonie, Thomastown VIC

Super Facts and Tips

Tax-free Components Superannuation

A taxable component of superannuation is not something that most people work so hard on. But if you read through your super statements in a yearly time-frame, you will see them there. The taxable component is essentially the concessional contributions that have been put into the fund.

It is in concessional contributions where the employers put in their 9,25% that goes into the taxable portion of the fund. If you personally go into salary sacrifice, where you’re giving an additional contribution, and you’re receiving a tax-advantage at a super tax rate of 15% in preference to your own tax rate, that will move on to the taxable component of the fund.

A Case Study

Let’s say that you have saved up some term deposit or some shares outside of super throughout the years and you’d like to move them across, and this is money you’ve built up over time and you’ve paid your tax on it already, you can move that into your concessional super fund as a withdrawn contribution.

It is these types of contributions that go into the tax-free component of the super fund. These taxable and tax-free components have a bearing on pensions that are paid up in the ages of 55 and 60, and also on your own death where the funds are paid to you non-financial dependents. But that’s another topic for another article all along.

Thanks for reading through this article. If you want more information about the tax and tax free components of super, visit www.australiansuperfinder.com.au

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