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   Super Guide

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%.

Excess contributions: Happy ending to a horror story   Super Guide

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.

Super tax refund for lower income earners to be axed   Super Guide

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, when the government cancels the LISC.

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

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”.

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

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.

TRIPs: 10 interesting facts about transition to retirement pensions   Super Guide

If you’re aged 55 years or over, you may be able to access up to 10% of your super benefits each year without having to retire.

Liberal Party’s superannuation to do list (updated)   Super Guide

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.

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

The official election campaign is in full force and we have some promises from both parties on what is going to happen to superannuation.

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

If it were not for tax, superannuation wouldn’t exist. You would simply invest in your own name. Superannuation is taxed at lower rates to encourage people to lock their money away for retirement.

Non concessional contributions: Re contribution strategy still applies   Super Guide

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)…