Contributions tax

Contributions tax is a tax of 15 per cent on before-tax contributions.

Set out below are all SuperGuide articles explaining Contributions tax.

Superannuation changes: What rules apply for the 2016/2017 year?

Although the newly elected Coalition government has announced significant amendments to Australia’s superannuation rules, many of the big-ticket super policies are not changing, and many of the proposed changes will not apply for the 2016/2017 year.Apart from the $500,000 lifetime after-tax … [Read more...]

2016 Federal Election update: What superannuation and retirement policies can you expect?

The 2016 Federal Election on 2 July will decide whether the Coalition’s announced super policies will go ahead, while the ALP has been unusually silent on its proposed super policies, apart from quietly reaffirming two policies, with one measure adopted by the Coalition.The May 2016 Federal … [Read more...]

Capital gains: Reducing tax via super contributions

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...]

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 has 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 … [Read more...]

Double contributions tax for more high-income earners

Note: Currently (and until 30 June 2017), anyone earning an adjusted taxable income of more than $300,000 pays an extra 15% tax (total of 30%) on concessional (before-tax) super contributions. In April 2015, the ALP announced an election policy to bring the income thresholds down to $250,000, and on … [Read more...]

How is contributions tax deducted from salary sacrifice super contributions?

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...]

Excess contributions: Happy ending to a super horror story

Note: This article contains good news for those worried about exceeding the super contributions caps. The excess contributions rules are now a lot fairer than in the past. This article also explains the unfair rules that used to be in place before July 2013.You can make two types of super … [Read more...]

Excess contributions tax: The most ridiculous super policy ever?

Note: This article outlines the disastrous outcomes that can result when a tax policy is not properly considered, and not properly implemented. The excess contributions rules are now a lot fairer than in the past, and a lot fairer than what is discussed in this article. For the latest excess … [Read more...]

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...]

Why a $11,000 contributions cap is a silly idea

The federal government, various think tanks and business groups are obsessed with superannuation tax concessions and the need to fix the budget by cutting those super tax concessions. While the tax tango continues, we also need the government and the super industry to become obsessed with the bigger … [Read more...]