My wife put $4000 into her Superfund, how much does she get back?

Everyone can contribute up to $27,500 for annual super contributions.  So as long as your personal super contributions and your employers super contributions don't exceed the $27,500 then your $4000 will be tax deductible.

How much she gets back depends on her taxable income in a particular year.  Australia has a sliding tax scale so the more you earn the higher the rate of tax will be.  It is that tax rate that is applicable to her taxable income and is used to determine her "tax back" savings. 

For instance if your wife earned $50,000 for the year, her tax rate including Medicare levy would be at a rate of 32%.

To calculate her tax saving simply multiply the deduction ($4000) times the Tax Rate (32%).....

4000 x .32 = $1280

So your wife would save an amount of $1280 in taxation and at the same time increasing her retirement benefits.

It should be noted also that any income earned by your wife's Superfund would only be taxed at 15%.  This is a major tax saving from the rate of tax that individuals need to pay.

Well, here at GoTax we all hope you enjoyed our latest blog installment.

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