{"id":8329,"date":"2024-02-26T12:03:42","date_gmt":"2024-02-26T01:33:42","guid":{"rendered":"https:\/\/adelaideprivatewealth.com.au\/how-to-boost-your-super-with-a-lump-sum\/"},"modified":"2024-02-26T12:03:42","modified_gmt":"2024-02-26T01:33:42","slug":"how-to-boost-your-super-with-a-lump-sum","status":"publish","type":"post","link":"https:\/\/adelaideprivatewealth.com.au\/how-to-boost-your-super-with-a-lump-sum\/","title":{"rendered":"How to boost your super with a lump sum"},"content":{"rendered":"
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If you\u2019re lucky enough to have received a windfall, perhaps an inheritance or a retrenchment payout, your first decision will be what to do with it.<\/strong><\/p>\n

Assuming you have decided against a shopping splurge, finding the best place to invest a lump sum is all about the effect on your tax bill and how soon you will need access to the funds.<\/p>\n

For those interested in investing their lump sum for a longer term, superannuation is one approach because of its tax benefits.<\/p>\n

But be aware that, while super can be a tax-effective investment, there are limits on how much you can pay into your super without having to pay extra tax. These are known as contribution caps<\/a>.<\/p>\n

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Different types of contributions<\/h3>\n

There are two types of super contributions you can make \u2013 concessional and non-concessional \u2013 and contribution caps apply to both.<\/p>\n

Concessional contributions are paid into super with pre-tax money, such as the compulsory contributions made by your employer. They are taxed at a rate of 15 per cent.<\/p>\n

Non-concessional or after-tax contributions are paid into super with income that has already been taxed. These contributions are not taxed.<\/p>\n

So, the tax you pay depends on whether:<\/p>\n