Super and tax

Find out how your superannuation is taxed including what happens if you retire before the age of 60 – tax, the tax-free benefits on or after the age of 60, how the earnings on your super savings are taxed, how your super contributions are taxed, and the tax implications of leaving your super benefits to family or friends when you die.

You can also learn some of the popular tax-effective super strategies, including how the super tax rules affect SMSFs.

Below are some of our key Super and tax articles:

Set out below are all SuperGuide articles explaining Super and tax.

Non-concessional contributions: Re-contribution strategy still applies

Q: My wife turns 60 this financial year and it has always been my intention to cash out her portion of our small self-managed super fund (SMSF) and re-contribute it straight back in, so as to ensure that when she and I pass away, our children are not hit by tax. Is that still a valid strategy and if … [Read more...]

Super contributions: Beef up using a bring forward

Q: Under the 2-year bring-forward of non-concessional contributions, if a person makes an after-tax contribution of $180,001 when age 64 during the 2015/2016 year, can he continue to contribute the balance of the $540,000 anytime during the next 2 years without having to satisfy the work test?A: … [Read more...]

Salary-sacrificed contributions count for Family Tax Benefit

Q: I was wondering what you know about salary sacrifice super being included in Family Tax Benefit family income calculations?A: Since 1 July 2009, salary sacrificed super contributions have been included when assessing income for the Family Tax Benefit (FTB). The income test used for the FTB is … [Read more...]

Concessional contributions: Turning 50 is all about timing

Q: I was born in May 1966 (turning 50 in May 2016). Can you explain which financial year I am considered to be over 50 in relation to the special $35,000 concessional contributions cap?A: For the benefit of other readers, I will first explain the concessional (before-tax) contribution rules for … [Read more...]

Salary sacrificing will not increase co-contribution entitlement

Q: I understand salary-sacrificed super contributions must be added back in to assessable income for co-contribution purposes. Do you know anything about this?Yes, your understanding is correct. Salary sacrificed contributions count towards the co-contribution income test, and this has been the … [Read more...]

Turning 65: Maxing out the after-tax contributions cap

Q: If you turn 65 after 1 July 2015, and you retire after 1 July 2015, can you still make the $540,000 bring-forward non-concessional contribution as long as you make the contribution before 30 June 2016? Or do you have to satisfy the work test to do so?Answer: For the benefit of other readers, … [Read more...]

Superannuation contributions: Wearing two caps

Q: Are the caps relating to ‘concessional’ and ‘non-concessional’ contributions regarded as separate? Put simply, can I contribute $30,000 concessional and $540,000 non-concessional sums (a total contribution of $570,000) to my super fund for the 2015/2016 year?A: ‘Yes’ is the answer to the … [Read more...]

Bring-forward rule: 10 super facts you should know

I receive a lot of questions from readers seeking information about how the non-concessional (after-tax) rules work; in particular, how the bring-forward rules works. The bring-forward rule works over a 3-year period so it is very important that you keep track of the size and timing of any … [Read more...]

Contributions caps relate to financial years, not calendar years

Q: I understand the three-year bring-forward rule that allows you to contribute up to $540,000 in after-tax contributions. My question is: What date does the second three-year period start? For example, if I contributed $540,000 on 28 Dec 2015, does that mean I can contribute another $540,000 on or … [Read more...]

SMSF trustees unfairly targeted by super tax illiterates

Some leaders in the superannuation sector and in some economic think tanks are ignorant about SMSFs, including how the super tax rules work generally. Yet we have numerous pronouncements by various individuals and organisations about SMSFs not paying tax, or SMSF trustees not having the skills to … [Read more...]