Personal Superannuation Contributions Apart from the superannuation guarantee which requires that employers contribute 9% of your salary towards super, you can also make additional personal contributions using your own money. Salary Sacrifice Salary sacrifice refers to the process of choosing to receive less take-home salary than you normally would with the difference being added to your superannuation fund. The advantage of this is that the additional amount contributed to your super will be eligible for tax concessions i.e. a tax rate of just 15% as long as you do not qualify for the superannuation contributions surcharge (see superannuation taxation). When compared to your personal tax rate, which may be 30% or more, this will be a very attractive deal which results in more money to your name, particular as your income as tax rate increases over time. Undeducted Contributions Most employers should allow employees the option of making a salary sacrifice into superannuation. If, for any reason, your employer does not provide this option, you will still have the option of putting in your after-tax money into your super fund. However, you will not be able to enjoy tax concessions on these contributions and cannot claim a tax deduction on them. For this reason, these contributions are known as undeducted superannuation contributions. Tax concessions, however, will still apply to any earnings or returns generated from the investments made from your superannuation fund. Government Co-Contributions The Government co-contribution scheme was devised to assist low-income earners in building their superannuation fund value. Based on the scheme, for each personal contribution made by low-income earners, the government will make an additional contribution to their fund. The Government will determine the appropriate amount it will make towards co-contributions based on information provided in tax returns lodged annually. The additional amount co-contributed by the Government will depend on your income and personal contribution made. If you are income is less than $20,000 you will receive a maximum additional amount of $1,000 if you made a personal contribution of equal value. The maximum amount will decrease by 8 cents for each dollar of your income over $20,000 up to $32,500 after which you will not be eligible for any co-contributions. Government superannuation co-contributions do not get taxed and do not count towards your reasonable benefits limit (RBL). Recommended Reading Manage your own super with DIY Self-Managed Superannuation Funds. Minimise fees and enjoy high returns with Industry Super Funds. Get tips on how to Choose the Right Super Fund. Understand the various types of Superannuation Funds available.