The excess contributions tax regime has been, and continues to be a total disaster. The federal government has cared very little about the fact that conscientious super savers, who made every attempt to the follow the rules, were being hit with outrageous tax bills, savaging hard-earned retirement … [Read more...]
Q: Where can I find the spreadsheet where you can calculate how much to put in as a co-contribution, and what the government will pay you in return for that super contribution. In other words the sliding scale of co-contributions. The schedule you refer to can be found at the link here. You … [Read more...]
I receive a lot of questions from readers seeking information about how the non-concessional (after-tax) super contributions rules work; in particular, how the bring-forward rule works. More recently I have received several emails from readers who have fallen foul of the bring-forward rules and … [Read more...]
You can make superannuation contributions up to the age of 74, and these can be concessional (before-tax) or non-concessional (after-tax) contributions. If you’re aged 65 or over, then you must satisfy a work test if you intend to make super contributions. Anyone under the age of 65 can make super … [Read more...]
Q: Under the 2-year bring-forward of non-concessional contributions, if a person makes an after-tax contribution of $150,001 when age 64, can he continue to contribute the balance of the $450,000 anytime during the next 2 years without having to satisfying the work test? Answer: In this … [Read more...]
Q: If you turn 65 and retire after 1 July 2012, can you still make the $450,000 bring-forward non-concessional contribution as long as you make the contribution before 30 June 2013? Or do you have to satisfy the work test to do so? Answer: For the benefit of other readers, I’ll first explain … [Read more...]
Four years ago, in January 2009, we launched the SuperGuide website, and since that time we have received thousands of questions, from our millions of visitors, on different aspects of superannuation. We try to represent as many questions as possible in the articles we publish, while also ensuring … [Read more...]
Q: Thanks for your website and advice. Just a quick question: I turned 65 in January 2013. So I was 64 years of age for a large part of the 2012/2013 financial year, but of course I turned 65 during the 2012/2013 financial year, that is, in January 2013. My understanding is that because I am under … [Read more...]
Note: This article is updated every few months with the latest lifestyle/income data and latest Age Pension rates. The most recent data was released in November 2012 (for lifestyle costs up to September 2012), and in September 2012 (for Age Pension rates, which apply until March 2013) This case … [Read more...]
Q: I am 62 years of age and retired. I have recently commenced an account-based pension from my SMSF. Can I still make non-concessional contributions to that fund? A: I have divided your question into two parts. 1. Can someone who is 62 years of age and retired, continue to make super … [Read more...]
This updated article is a must-read if you make contributions to a super fund, in addition to your employer’s compulsory Superannuation Guarantee contributions. If you have a salary sacrifice arrangement in place then you will need to check how much, and when, these additional concessional … [Read more...]
Salary sacrificing, by making before-tax superannuation contributions, is a popular strategy for employees on middle-to-high incomes. The deal is that you increase your superannuation balance (and pay 15% contributions tax) while reducing the amount of income tax payable (up to 46.5%) on your salary … [Read more...]
Q: For a taxpayer aged over 50, can a total contribution of $175,000 this year (150K non concessional and 25k concessional) and a total contribution of $475,000 next financial year (450k non concessional and 25K concessional) be made without attracting penalty tax? A: The short answer is … [Read more...]
Under the superannuation rules, the annual superannuation contributions caps were designed to be indexed in line with movements in average wages. Wages have obviously increased since July 2007 (when the new contribution rules were introduced), but since July 2007, the concessional (before-tax) and … [Read more...]
Q: Are the caps relating to ‘concessional’ and ‘non-concessional’ contributions regarded as separate? Put simply, can I contribute $25,000 concessional and $450,000 non-concessional sums (a total contribution of $475,000) to my super fund for the 2012/2013 year? A: ‘Yes’ is the answer … [Read more...]
