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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 now, none of the proposed changes will apply for the 2016/2017 year.Apart from the proposed $500,000 lifetime … [Read more...]

Super for Beginners (25 Q&As)

One of SuperGuide’s more popular initiatives has been the development of a ‘Super for Beginners’ section that answers some of the many questions that we receive from those readers who are new to superannuation and new to super’s terminology.The series currently consists of several lead articles, … [Read more...]

Super for beginners, part 25: Is super worthwhile if I’m earning less than $37,000?

Q: Great site! Lots of excellent information. I now work part-time, earning just under $37,000, and wondered whether I should bother with super. I am pretty sure I will get the Age Pension, and based on my income I reckon I would be better to save outside super and pay less tax, rather than have my … [Read more...]

Super for beginners: Top 10 must-know facts

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

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

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), but at a lower rate of tax than non-superannuation … [Read more...]

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?Yes, it’s possible to make concessional contributions while an individual is unemployed. The second part of the answer … [Read more...]

Super for beginners, part 5: Is super my money, or the Government’s money?

Q: I never understood the term ‘superannuation’. Is that our money or government money? If it is our money why can’t we do whatever we want with it? Isn’t it illegal to cut our rights when it comes to this matter?I agree with you that the term ‘superannuation’ is confusing.If you are … [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...]

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 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 Tax … [Read more...]

Double contributions tax for more high-income earners

Note: Currently (and until 30 June 2017), anyone earning an ‘income for surcharge purposes’ of more than $300,000 pays an extra 15% tax (total of 30%) on concessional (before-tax) super contributions. super contributions. On 3 May 2016, the Coalition government announced its intention to lower the … [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...]