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.

Double contributions tax for high-income earners

Pixmac000012187169_coins_minimum_payments

Anyone earning more than $300,000 (including rental property losses and other items) now pays 30% tax on concessional contributions paid into a super fund, doubling the super tax bill for high-income earners. The regular contributions tax is a flat rate of 15%. Concessional contributions include … [Read more...]

Excess contributions: Happy ending to a horror story

5363174276_2300070017_z

Note: This article contains some good news for those worried about exceeding the contributions caps. The article also includes a summary of the Inspector-General of Taxation’s review into the ATO’s administration of the superannuation excess contributions tax. Any tax regime that can take 93% of … [Read more...]

Super tax refund for lower-income earners to be axed

super-tax-refund

SUPERGUIDE ALERT: The Coalition government is repealing the Low Income Super Contribution, and the government has confirmed this decision in the 2014/2015 Federal Budget. Under the draft legislation, the LISC will be payable for the 2012/2013 year only. We will update the website, and this article, … [Read more...]

Unwise and unfair! Low-income earners hit with extra super tax

joe-hockey

Hidden deep in the 2014 Federal Budget documents was a statement that the government maintains its intention to repeal the Mineral Resource Rent Tax and associated measures. The Low Income Super Contribution is one of those “associated measures”. The repeal of the Low Income Super Contribution … [Read more...]

Super for beginners, part 15: Super tax – as easy as 1-2-3

2623641710_8fffa6c5ac_b

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...]

TRIPs: 10 interesting facts about transition-to-retirement pensions

Pixmac000012375043_cake_trip

Note: The general concessional contributions cap is increasing to $30,000 (from $25,000), effective from 1 July 2014. The special $35,000 cap for over-60s will also apply to over-50s from 1 July 2014 (or more specifically, to anyone who is aged 49 years or over on 30 June 2014). An increase in the … [Read more...]

Liberal Party’s superannuation to-do list (updated)

superannuation-to-do-list_2507554_c

The Liberal Party and National Party Coalition are now in government and the superannuation agenda has shifted slightly, although the LNP has not yet confirmed all of its pre-election superannuation policies. Outlined below is a quick recap of the LNP’s position on current and proposed … [Read more...]

Superannuation: Hit list for the 2013 Federal Election (September 2013 update)

Superannuation election

UPDATE: The Liberal/National Party coalition won the September 2013 election. For a current list of the government’s current and proposed superannuation policies, see SuperGuide article Liberal Party’s superannuation to-do list (updated). The official election campaign is in full force and we … [Read more...]

Super for beginners, part 17: Four must-knows about super’s tax rules

SuperGuideCustomImages.007

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...]

Non-concessional contributions: Re-contribution strategy still applies

6239122935_d97c29f332_b_mill

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...]