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.

Excess contributions: Happy ending to a super horror story

Note: This article contains good news for those worried about exceeding the super contributions caps. The excess contributions rules are now a lot fairer than in the past. This article also explains the unfair rules that used to be in place before July 2013.You can make two types of super … [Read more...]

Excess contributions tax: The most ridiculous super policy ever?

Note: This article outlines the disastrous outcomes that can result when a tax policy is not properly considered, and not properly implemented. The excess contributions rules are now a lot fairer than in the past, and a lot fairer than what is discussed in this article. For the latest excess … [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 available until 2016/2017 year

NOTE: The Coalition government has extended the Low Income Super Contribution (tax refund on certain super contributions) until the 2016/2017 year. The time extension for this refund was part of a parliamentary deal which secured passage of the repeal of the Mineral Resource Rent Tax. Under the new … [Read more...]

Why a $11,000 contributions cap is a silly idea

The federal government, various think tanks and business groups are obsessed with superannuation tax concessions and the need to fix the budget by cutting those super tax concessions. While the tax tango continues, we also need the government and the super industry to become obsessed with the bigger … [Read more...]

Why women have to save more super, and why pollies should care

When we first launched SuperGuide seven years ago, I wrote an article explaining why tax-free super in retirement was a non-issue for most women. The reason for making this statement, and which unfortunately remains valid seven years later, was that many women, on average, have such low super … [Read more...]

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

Note: The special $35,000 cap for over-50s continues to apply for the 2015/2016 year (or more specifically, applies to anyone who is aged 49 years or over on 30 June 2015). If you’re considering a transition-to-retirement pension, while continuing to make super contributions, then seek taxation … [Read more...]

Non-concessional contributions: Re-contribution strategy still applies

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...]

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...]