Super stupid! Super tax for rich will hit everyone
The Federal Government has announced that anyone earning more than $300,000 will pay 30% tax on concessional contributions paid into a super fund, doubling the super tax bill for high-income earners. The current contributions tax is a flat rate of 15%.
Super tax refund for lower-income earners starts July 2012
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.
Another horror story: How to pay 93% tax on your super contributions
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 and SG contributions, that ECT has become a possibility for all Australians.
How is contributions tax deducted from salary sacrifice 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?
Super for beginners, part 6: Can I make concessional (before-tax) contributions while I’m unemployed?
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?
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.
Super for beginners, part 15: Super tax – as easy as 1-2-3
Your superannuation benefit can be taxed at three stages: When making contributions, when a super fund earns income and when receiving super benefits
Non-concessional contributions: Re-contribution strategy still applies
Q: My wife will turn 60 later this year and it has always been my intention to cash out her portion of our small self managed super fund (SMSF)…
Super for beginners: Top 10 must-know facts
Since we launched the SuperGuide website in 2009, we have received thousands of questions on different aspects of superannuation. We try to represent as many questions as possible, while also ensuring we cater for readers who are just beginning their super education.
TRIPs: 10 interesting facts about transition-to-retirement pensions
I often describe transition-to-retirement pensions (TRIPs) as the super saver’s version of ‘having your cake and eating it’.
Is super tax effective for those earning less than $37,000?
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.”
