Concessional (before-tax) contributions

Concessional is a term used to describe favourable tax treatment. For example, earnings in superannuation funds receive concessional tax treatment. The term 'concessional contributions' means 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.

Set out below are all SuperGuide articles explaining Concessional (before-tax) contributions.

Excess contributions rules: A quick summary

If you plan to make superannuation contributions to a super fund, you need to be mindful of the contributions caps for both concessional (before tax) contributions and for non-concessional contributions. You also need to understand the financial (or other) consequences of exceeding those … [Read more...]

Concessional contributions caps to be slashed from July 2017

On 3 May 2016, as part of the 2016 Federal Budget, the Coalition government announced it intends to scrap the over-50s concessional (before-tax) contributions cap of $35,000 and replace it with a $25,000 cap, and reduce the general concessional contributions cap (for under-50s) to $25,000, from its … [Read more...]

Less tax, more super? A transition-to-retirement pension may no longer be the answer

On 3 May 2016, in the 2016 Federal Budget, the Coalition (Liberal/Nationals) government announced that, from 1 July 2017, it intends to remove the tax exemption on pension fund earnings financing a transition-to-retirement pension (TRIP). The removal of the tax exemption, subject to legislation, … [Read more...]

Super tax refund for lower-income earners to extend beyond June 2017

In a welcome backflip, as part of its 2016 Federal Budget release on 3 May 2016, the Coalition government announced it will extend the Low Income Super Contribution (LISC) beyond its legislated expiry date of June 2017. The only change is that it will be renamed as the Low Income Superannuation Tax … [Read more...]

Superannuation tax refund: 10 things you should know

SUPER ALERT! In a welcome backflip, as part of its 2016 Federal Budget announcement on 3 May 2016, and confirmed with the re-election of the Coalition government in July 2016, the Coalition government has announced it will extend the Low Income Super Contribution (LISC) beyond its legislated expiry … [Read more...]

The short story on super contributions limits (2016/2017 year)

You can make two types of superannuation contributions – concessional (before-tax) contributions and non-concessional (after-tax) contributions – and each type of contribution has a separate limit. Concessional contributions Before-tax contributions, such as compulsory Superannuation Guarantee … [Read more...]

Tax-deductible super contributions: Claim no more than your income

Q: If I make a personal concessional payment of $30,000 (tax-deductible) into my super fund and my personal taxable income for 2016/2017 is $20,000, are there possible tax penalties because I’m claiming $10,000 more than my taxable income?I suggest you chat to a registered tax agent, typically … [Read more...]

SG contributions now paid for over-70s (since July 2013)

Since 1 July 2013, eligible employees who are 70 years or older have received Superannuation Guarantee (SG) payments from employers. The previous SG rules stopped SG entitlements when an employee turned 70 years of age.What this means is that since 1 July 2013, eligible employees aged 70 years … [Read more...]

Salary sacrificing and super: 10 facts you should know

Salary sacrificing superannuation, by making before-tax super contributions, is a popular strategy for employees on middle-to-high incomes. The deal is that you increase your superannuation balance (and pay 15% contributions tax, and for those earning an adjusted taxable income of more than … [Read more...]

Tax-deductible super contributions: Meeting the 10% income test

Q: I work for myself but I also have a part-time job. I have been told that even though I receive SG from my part-time employer, I can also make tax-deductible super contributions. Is that true? And if it is true, how does it work?Individuals who are self-employed, or who are not employed, are … [Read more...]