When it comes to tax planning, Is knowing your average tax rate helpful?

Recently had some interesting conversations in the comments around average tax rates and the value of concessional superannuation contributions. Police calculations your average tax rate is irrelevant. You should be focusing on what your top marginal tax rate is. When you make a concessional contribution into superannuation and pay 15% tax, this contribution comes off your highest marginal tax rate rates not your lowest. So your average tax rate is helpful to know what you’ve paid on average after you’ve done your tax claim not before. General advice only.

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