Contribution Tax in Superannuation Account

smith1286 on 22/04/2022 - 10:38
Last edited 24/04/2022 - 21:01

Hi All,

Hope everyone is doing great.

Could you please help me to understand what is Contribution tax in superannuation statement and if there a way to reduce/ignore it. I am currently with MLC, It would be great if you could suggest me best superannuation company.

Effective date Transaction type Description Investment option Unit price Units Amount
2022-04-04 Fees, taxes & premiums Contributions tax MySuper Growth Portfolio 12.70022 -28.21841 -358
2022-03-03 Fees, taxes & premiums Contributions tax MySuper Growth Portfolio 12.52494 -13.18569 -160
2022-02-03 Fees, taxes & premiums Contributions tax MySuper Growth Portfolio 12.62746 -13.07864 -170

Regards,
Smith

Financial Superannuation

Comments

  • spiff on 22/04/2022 - 10:49
    +1

    Contributions tax is the 15% tax on superannuation earnings. There is no way around this. Other superannuation companies wont tax you any differently.

    • smith1286 on 22/04/2022 - 19:46

      Thanks spiff.

  • Shadowsfury on 22/04/2022 - 10:51
    +2

    Super tax is 15% of your contribution - can't be reduced. Is already a lot lower than your marginal tax rate hence the benefit coming from superannuation.

    Annoying they aren't splitting out the fees and premiums each month though - I get the feeling being MLC you might be taken for a ride on the fee front because they aren't an industry super fund - you should read the relevant PDS and see how the fees look vs the major super funds like AustralianSuper, Australian Retirement Trust etc

    Premiums are for insurance (TPD, Life/Death, Income Protection) - there can be big differences in premiums between super funds here too although might be more difficult to compare.

  • wei13 on 22/04/2022 - 11:48

    Those look like compulsory employer superannuation contributions paid to your super account each month by your employer.

    These payments are not included in your normal assessable income, and are not taxed in your personal tax return. Instead, these payments are taxed at 15% when deposited into your superannuation account.

  • Donaldhump on 22/04/2022 - 12:12
    +3

    OT : i found mlc sucks btw, i had it for a few years and found it performed poorly.

    as stated 15% contributions tax

    • bobbified on 22/04/2022 - 19:33
      +1

      OT : i found mlc sucks btw, i had it for a few years and found it performed poorly.

      They all suck if you don't choose your investments properly.

      • rektrading on 23/04/2022 - 00:01

        Imagine people pamping extra 💵 in a pension fund hoping to spend it when they retire and then die before it happens. That would blow big time.

        • Donaldhump on 23/04/2022 - 06:15
          +1

          Imagine if you did die before you retire and your poor wife/husband and/or kids got your super and were able to survive comfortably.

          Imagine people who don’t and then live till 92 and run out of money at 72 but don’t have the will to commit suicide and scrape by on the pension eating noodles and baked beans living that shit existence all because they couldn’t sacrifice that little bit in their 40s/50s

          Imagine paying 42c tax on money you earn but have no use for as you already have no mortgage etc. best method is inter generational super usage.

          • rektrading on 23/04/2022 - 07:03
            -1

            @Donaldhump: That's what life insurance is for.

            • Donaldhump on 23/04/2022 - 11:33

              @rektrading: True cost a lot though in premiums to have a decent amount such as a million esp as you get older, and hoping they don’t stiff you

              What about scenario where you don’t die and live to 92 and have sfa super

              Easiest 25 percent return putting money in super and then only 15 percent tax on earnings.

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