Jacob Fenech

So, meaning that the total doesn't change because that's in your contract with the employer.

So, the total doesn't change.

It's just that there's more super out of your total package.

Is that right?

I think just on that, I think the counterpoint to that is so we want to be paid 10% on top of our wage, our base salary.

But I think the counterpoint that a lot of small businesses have, right, is that especially during COVID, they're struggling.

And to pay even a little bit more in super can hurt.

So just being aware of that.

If listeners, you think, okay, I want to be paid 10%, just be aware that your employer might say that, you know, hey, we're in a pretty tough position.

This is what we think.

I mean, hey, for most people, it's kind of splitting hairs, that extra 0.5.

But just something to keep in mind as a counterpoint, what the employer might come back to you with.

So just to flesh that out for people,

Imagine you're in a 37% tax rate.

If you invest in, let's say, an ETF or some shares in your brokerage account, you're paying tax on the earnings at that 37% because that's your marginal tax rate.

That's you paying tax in your own name.

But if it's inside your super fund where you might hold the exact same investments, to be frank...

The super fund is lodging a tax return on your behalf and that's paying tax at a reduced rate of 15%.

So that's why people want to put as much money as they can, or a lot of people do, want to put as much money as they can inside super.

And the government rewards that behavior effectively by saying, if you put more money in to fund your retirement so we don't have to do that,