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.

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

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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...]

Super for beginners: Top 10 must-know facts

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Nearly six years ago, in January 2009, we launched the SuperGuide website, and in March 2009 we published the first monthly SuperGuide newsletter. Since that time we have received thousands of questions, from our millions of visitors, on different aspects of superannuation. We try to represent as … [Read more...]

Super tax refund for lower-income earners available until 2016/2017 year

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NOTE: The Coalition government has extended the Low Income Super Contribution for another 4 years, as part of a parliamentary deal to secure passage of the repeal of the Mineral Resource Rent Tax. Under the new legislation, the LISC is now payable for the 2012/2013, 2013/2014, 2014/2015, 2015/2016 … [Read more...]

Low-income earners enjoy super tax reprieve for 5 years

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Note: The Coalition government has been forced to extend the Low Income Super Contribution for another 4 years, in addition to the LISC applying for the 2012/2013 year. Due to parliamentary negotiations to secure passage of the repeal of the Mineral Resource Rent Tax, the LISC is now payable for the … [Read more...]

Double contributions tax for high-income earners

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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

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

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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

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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)

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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)

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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...]