Note: STOP PRESS – see related SuperGuide article 2013 Federal Election: new super changes summary (April 2013) for additional federal government superannuation announcements. SuperGuide will keep you regularly updated on the superannuation policies announced by the major political parties, … [Read more...]
Next month’s federal budget will hit the generous superannuation tax breaks received by the very richest Australians. The target will be the highest one to two per cent of earners, with the government arguing that the cutback is necessary to keep superannuation concessions sustainable over the … [Read more...]
Four years ago, in January 2009, we launched the SuperGuide website, and since that time we have received thousands of questions, from our millions of visitors, on different aspects of superannuation. We try to represent as many questions as possible in the articles we publish, while also ensuring … [Read more...]
Note: Since the concessional contributions cap was halved to $25,000 for over-50s (announced in May 2012, and effective from July 2012), anyone using the popular transition-to-retirement pension/salary sacrifice strategy, or considering using such a strategy, will need to review this strategy, … [Read more...]
Note: The Q&As listed in this article have been revamped and updated for the 2012/2013 year. One of SuperGuide’s more popular initiatives has been the development of a ‘Super for Beginners’ section that answers some of the many questions that we receive from those readers who are new to … [Read more...]
Q: I am trying to understand how my super is taxed and it seems that it is taxed at every turn. Can you please explain when, and how, a super benefit is taxed? A: If it were not for tax, superannuation wouldn’t exist. You would simply invest in your own name. Superannuation is taxed at lower … [Read more...]
Superannuation only exists because of how super savings are taxed. Superannuation savings receive tax incentives to encourage Australians to choose super as a retirement savings option. Even so, superannuation is still taxed (for most Australians) at a lower rate of tax than non-superannuation … [Read more...]
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? A: Yes, it’s possible to make concessional contributions while an individual is unemployed, but whether that is the … [Read more...]
Note: SuperGuide will be updating this article regularly as new information becomes available on what this new superannuation surcharge means for those directly affected, and how the costs of administering the super surcharge will be spread across all super fund members. Article last updated on 9 … [Read more...]
If you earn less than $37,000 a year, and your employer makes concessional (before-tax) superannuation contributions on your behalf, then you can expect a refund of the contributions tax deducted from your super account, paid directly to your superannuation account by the Federal Government. The … [Read more...]
Any tax regime that can take 93% of someone’s money is unfair, outrageous and should be overhauled. Excess contributions tax is not just a problem for high-income earners, as the politicians may want the population to believe. The contribution caps are now so low relative to average salaries … [Read more...]
Q: If I choose to salary sacrifice some of my income into my super account, is the 15% taxed separately on the salary sacrificed super, and then another 15% on amount my employer contributed, or are the two added together then the 15% tax deducted? The contributions tax is generally deducted by … [Read more...]
Q: I have a self-managed super fund (SMSF) and I also have two investment properties in my personal name. When I sell the properties, I will be required to pay capital gains tax. Can this capital gains tax be offset by a contribution to the SMSF which would be tax-deductible? Would there be a 15% … [Read more...]
Q: My wife will turn 60 next 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 so, am … [Read more...]
Q: Great site! Lots of excellent information. However, I am not sure I agree with your comment "... if you earn less than $37,000 in a year (for the 2010/11 year), you have no real income tax advantages when investing via a superannuation fund." The tax payable on $37,000 (incl Medicare and low … [Read more...]
