We receive dozens of emails requesting information about moving pension funds from the United Kingdom into an Australian superannuation fund. For the UK to permit an individual to transfer retirement monies to another country, the UK government (more specifically Her Majesty Revenue and Customs, … [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...]
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...]
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...]
Q: Does a co-contribution received after using up the total bring forward cap of $450,000 mean that an excess contribution has been made, or is the Government co-contribution excluded from the after-tax contribution cap? A: A superannuation co-contribution is a tax-free super contribution paid by … [Read more...]
For the 2012/2013 year, the concessional contributions caps for over-50s has changed dramatically – the concessional cap has halved for over-50s, while the concessional cap for under-50s, and the non-concessional contributions caps for everyone, remain at 2011/2012 levels. The ATO has also … [Read more...]
Any tax regime that can take 93% of someone’s money is unfair, outrageous and should be overhauled. 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 … [Read more...]
Q: It seems I have exceeded the contributions cap in 2007-2008 by $6,600 and the ATO has imposed a penalty. Can you provide any guidance on what sort of pleas they would consider? I'm sorry to read about your predicament. I assume the ATO has sent you a letter regarding your appeal options, which … [Read more...]
Q: My question is about a member’s notional superannuation account’s yearly value amounts. Are these "Notional amounts" that the (long time) employee will receive, but not yet physically accrued in their superannuation account, are they then included in the individual’s concessional cap? If … [Read more...]
In a conciliatory move to try to redress the worst aspects of the excess contributions tax regime, the Federal Government has announced some concessions for first-time offenders who exceed the super contributions caps by relatively small amounts. From 1 July 2011, individuals who breach the … [Read more...]
In September 2010, I published a to-do list of 16 major superannuation issues needing action by the Federal Government post the Federal election. I published this list in the form of a public memo, as a helping hand for the newly appointed Minister of Superannuation, Bill Shorten. Sadly, progress … [Read more...]
Dear Mr Shorten Congratulations on your appointment as Assistant Treasurer and Minister for Financial Services and Superannuation. You have a busy few years ahead of you and the team at SuperGuide are here to help you make the right policy decisions for the financial security of millions of … [Read more...]
Q: I'm a member of the Military Superannuation & Benefits Scheme (MSBS), which is a hybrid defined contribution/defined benefit scheme. While I pay 5% of salary towards a 'Member Benefit', MSBS doesn't have a 9% employer contribution, as my 'Employer Benefit' is based on years of service and … [Read more...]
In one of the more sneaky Budget tricks conjured by the Government, the non-concessional contributions cap has been cut by $15,000 for the 2009/2010 year, and the bring forward cap cut by $45,000. (Non-concessional contributions are voluntary contributions not claimed as an income tax deduction … [Read more...]
