Money Magazine Australia - - SUPER - Source: bud­­ti­ma­tor

Michelle earns $60,000 a year and wants to buy her first home. Us­ing salary sac­ri­fice, she an­nu­ally di­rects $10,000 of pre-tax in­come into her su­per­an­nu­a­tion ac­count, in­creas­ing her bal­ance by $8500 af­ter the con­tri­bu­tions tax of 15% has been paid by her fund.

Af­ter three years she is able to with­draw $27,380 of con­tri­bu­tions and deemed earn­ings on those con­tri­bu­tions. Her with­drawal is taxed at her mar­ginal rate (in­clud­ing Medi­care levy) less a 30% off­set. Af­ter pay­ing $1620 of with­drawal tax she has $25,760 that she can use for her de­posit.

Michelle has saved around $6240 more for a de­posit through the gov­ern­ment's scheme than if she had saved in a stan­dard de­posit ac­count.

Michelle's part­ner Nick has the same in­come and also salary sac­ri­fices $10,000 an­nu­ally to su­per­an­nu­a­tion over the same pe­riod. To­gether they have $51,520 that they can put to­wards a de­posit, $12,480 more than if they had saved in a stan­dard de­posit ac­count.

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