Guide to Pre-Tax Concessional Super Contributions

The first question:

Why do you want more money in your super?

• You can save on income tax now. Your superannuation is taxed at 15%for contributions up to a limit. There are also various government incentives.
• Earnings on investment returns are tax-free in retirement. And prior to retirement, you can save on the tax paid on investment earnings. Investment earnings in superannuation are taxed at 0% in pension mode, and only 15% (10% for capital gains held longer than 12 months) otherwise.
  
  
• If you are saving for a first home, you can use the tax rate in your superannuation account to save faster. You get a discount on income tax (if you earn more than $45,000). This can be worth thousands.

The May 2026 proposed tax changes only increase the attractiveness of superannuationrelative to other investment vehicles.

What are the downsides?