Terms like employer contribution, concessional and non-concessional contributions can be confusing. In this article we break down these definitions for you.

Employer contributions
Whether you are employed full-time, part-time or as a casual, you are entitled to receive the equivalent of 9.5% of your wage as a payment by your employer into your super account. These super payments are called employer contributions and must be made at least every three months. 

It is important to check your pay slip or go to the member online section of your super fund website to ensure you are getting your super payments from your employer. Alternatively, go to the SUPER FUND COMPARISON section of the Roll-it Super platform and connect your superannuation account through Moneytree. Your history of employer contributions will then be visible in the dashboard.

If you don’t think your employer is paying you super, either ask them what's going on or contact the Australian Taxation Office on 13 10 20. Employers who break the rules are liable for penalties. They will also have to back-pay the superannuation payments they missed.

Voluntary payments
You can also choose to contribute some of your salary to super as a voluntary payment. Let's look at the types of voluntary contributions you can make. 

Concessional (before-tax) contributions
Concessional contribution is a fancy term to describe the fact you pay less tax when you put money in super instead of taking it as income. It applies for both employers or salary-sacrificed-before-tax super contributions. With concessional contributions you are taxed at a low 15% rather than your marginal income tax rate. 

Non-concessional (after tax) contributions
Non-concessional contribution relates to after-tax super contributions i.e. you have been already been paid and you make an additional contribution out of your personal savings or the savings of your spouse. Because you have already been taxed at your marginal income tax rate, no further tax is taken out of this money.

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General advice disclaimer
This is general information only and does not take into account your personal objectives, financial situation or needs. You should assess whether the information is appropriate for you having regard to your objectives, financial situation and needs and consider obtaining independent professional advice before making an investment decision. If information relates to a specific financial product you should obtain a copy of the product disclosure statement for that product and consider that statement before make a decision whether to acquire the product.

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