Concessional is a term used to describe favourable tax treatment. For example, earnings in superannuation funds receive concessional tax treatment. The term ‘concessional contributions’ mean that such contributions receive special tax treatment. Concessional contributions are before-tax contributions that can include employer contributions, contributions made under a salary sacrifice arrangement and tax-deductible contributions by an individual.
The following articles refer to Concessional contributions and superannuation.
This article is a must-read if you make contributions to a super fund, in addition to your employer’s compulsory Superannuation Guarantee contributions.
Hundreds of thousands of Australians who are making a serious effort to save for retirement are expected to receive a financial shock after the financial year ends in [...]
Q: I am 41 years old and my partner is 56 years old. We have a very big mortgage as we are both the casualties of wealth destroying divorces and single parenthood! Thus we intend to pay off our mortgage before putting more into our superannuation which will therefore be after [...]
Q: Before commencement of salary sacrifice, my financial adviser told me to ask my boss if he would agree to pay the 9% on the full salary because, legally the employer only needs to contribute the 9% on the income I receive after the salary sacrifice. In short, my gross salary [...]
Q: Could you lead me to a link where I could find a generic S290-170 notice of intent to deduct? It would be great to have a generic list of forms that would assist self-managed super fund (SMSF) trustees.
Trish’s response: You can download the ‘Notice of intent to claim or vary a [...]
Here’s a tip that can potentially save you thousands of dollars. Check that your super fund has your tax file number (TFN).
If you joined a super fund before July 2007, or started your current job before July 2007, then your fund may not have your TFN. Effective from 1 July [...]
Q: I have been made redundant and would like to know if any contribution in super is tax deductible while I’m unemployed even if I would find work in the next couple of weeks?
Q: If I have retired from work and later on inherit a reasonable sum of cash, can I make a non-concessional contribution into my superannuation fund? OR is that only permitted while I am working, regardless of my age?
Trish’s response: For the benefit of other readers, I will first explain the meaning of a non-concessional [...]
Q: I checked my statement and I put an extra $10 per week into my super and each time an amount is put in, it has been taxed. Is this right? I thought that my contributions were tax-free?
Q: I’m a member of the Military Superannuation & Benefits Scheme (MSBS). Is there some reduction in the concessional cap because MSBS is a defined benefit scheme?
Q: I’m 53, put $24,700 of pre-tax contributions into my super account ($950/ftn) with my employer also putting in about $7,000 a year. So, the budget rules (halving the concessional contributions cap) mean I can still salary sacrifice this $950/ftn amount until July 2012, attracting only 15% tax, then every [...]
Q: I am one of those people (and my wife) who made the decision years ago to invest in property rather than super. Now at 60, (wife 55) I am retired and live off my property investments. I have 14 tenants in 2 separate complexes and a separate house all in [...]
Q: I was born in April 1960. Can you explain which financial year I am considered to be over 50 in relation to the $50,000 concessional contributions cap?
Trish’s response: For the benefit of other readers, I will first explain the concessional (before-tax) contribution rules for those aged 50 or over.
If an individual is aged 50 [...]
Hi - I'm Trish Power and I am the author of Superannuation For Dummies and many other books on super and investing.And guess what! This site, SuperGuide, is the only INDEPENDENT website for consumers on superannuation in Australia. Read more