Superannuation contributions (or Personal contributions) are a contribution that an individual under the age of 75 contributes to a complying superannuation fund. Super contributions and earnings on those contributions are the key to accumulating a substantial retirement nest egg. Find out how you can make concessional (before-tax) contributions, non-concessional (after-tax) contributions, receive co-contributions and more.
The following articles refer to Super contributions and superannuation.
Q: I am 41 years old and my partner is 56 years old. We have a very big mortgage as we are both the casualties of wealth destroying divorces and single parenthood! Thus we intend to pay off our mortgage before putting more into our superannuation which will therefore be after [...]
I am writing this short article to provide some context to the articles that have appeared in the Australia Day weekend newspapers about the Henry tax review. Although the Henry tax review report is not a public document the Government has deemed it appropriate to ‘leak’ the [...]
Rating company, SuperRatings, expects the balanced options of Australia’s major super funds to deliver an investment return after fees and taxes of between 10% and 12% for the 2009 calendar year. More on this later.
Before I expand on this prediction, I want to explain how the reporting of fund returns works, [...]
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?
Trish’s response: I agree with you that the term ’superannuation’ is [...]
Superannuation contributions can be divided into two types — concessional (before-tax) and non-concessional (after-tax). Each type of super contribution is subject to a contributions cap (see table below). A contributions cap sets a limit on the amount of contributions you can make in any one year. If you exceed the cap, your excess contributions are [...]
The Federal Government is giving away money to anyone who makes a non-concessional (after-tax) contribution to their super fund, and who earns less than $62,000 a year.
Changes to the co-contribution rules, effective from July 2009, mean that anyone considering taking advantage of the co-contribution scheme for the 2009/2010 year needs to dot their ‘i’s and [...]
Non-concessional contributions are more popularly known as after-tax contributions. You may even hear them called ‘undeducted’ contributions. Such contributions are subject to a contributions cap, which sets a limit on the amount of after-tax contributions that you can make in one year (1 July through to 30 June). If you exceed the cap, your excess [...]
Q: I am attempting to work out when the 30% tax rate applies to both my wife and my own incomes for 2009/10 year. We are both 67 and operate a SMSF to which we can make concessional contributions, and I would like to reduce personal income to the point below [...]
This article is periodically updated with new rates, or to highlight changes to the Senior Australians Tax Offset rules. The latest article update, adding commentary on ‘rebate income’, occurred on 11 December 2009.
The superannuation tax rules are not the only tax benefits that you can take advantage of in retirement. If [...]
Q: If I have retired from work and later on inherit a reasonable sum of cash, can I make a non-concessional contribution into my superannuation fund? OR is that only permitted while I am working, regardless of my age?
Trish’s response: For the benefit of other readers, I will first explain the meaning of a non-concessional [...]
Q: I am 16 years of age. I still go to school but I have just started my first part-time job. Do I get any superannuation? And if I do, where does it go?
Trish’s response: Congratulations on your first job. You ask two questions about your super entitlements.
Am I eligible for [...]
Q: I have an investment unit. I would like to keep this unit as long as possible. The unit is a safe income stream and is a safe haven against a possible outbreak of hyperinflation (all this printed money may eventually generate inflation). However, if I have to sell it later, [...]
Hi - I'm Trish Power and I am the author of Superannuation For Dummies and many other books on super and investing.And guess what! This site, SuperGuide, is the only INDEPENDENT website for consumers on superannuation in Australia. Read more
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