At the same time, this can be a useful reminder to review where your money is going, including your super contributions.
Concessional contributions can include employer contributions, salary sacrifice and personal contributions for which you claim a tax deduction. These contributions are generally taxed at 15% in super, subject to the contribution rules and limits.
Depending on your circumstances, making concessional contributions may also reduce your personal taxable income. Whether that creates a tax benefit depends on things such as your income, contribution history, available cap space and overall financial position.
There is another important consideration too. Money contributed to super is generally preserved for retirement, so putting extra money into super is very different from keeping it available for mortgage repayments, living costs or other short-term needs.
The key point is simple: higher interest rates can be a good prompt to review your whole financial position, including whether your current super contributions still make sense for you.
Contribution caps and tax outcomes vary. Consider your individual circumstances and so talk to your accountant or advisor where appropriate.
