Note: Since the concessional contributions cap was halved to $25,000 for over-50s (announced in May 2012, and effective from July 2012), anyone using the popular transition-to-retirement pension/salary sacrifice strategy, or considering using such a strategy, will need to review this strategy, … [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...]
SuperGuide receives hundreds of questions every week from Australians wanting to create a better life for themselves in retirement. The types of questions we receive include: how much super should my employer contribute each year, how much money is enough, how can I work out if I am in a good super … [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...]
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...]
In September 2012, the Australian parliament decided that it was not the right time to allow same sex couples to marry. This outcome must be very disappointing for lesbian or gay couples seeking legal recognition of their committed relationship. Although your relationship may not be equal in the … [Read more...]
Q: If I make a personal concessional payment of $25,000 (tax-deductible) and a personal $150,000 non-concessional (non-tax deductible) payment into my SMSF and my personal taxable income for 2012/2013 is $20,000, are there possible tax penalties because I’m claiming $5,000 more than my taxable … [Read more...]
Q: I am self-employed and I have never made super contributions in my life. Am I eligible to make super contributions, and can I claim a tax deduction for those super contributions? You can make two types of super contributions: non-concessional (after-tax) contributions and concessional … [Read more...]
Q: Since July 2009, salary sacrificed super contributions have counted towards the co-contribution income test. Was there a similar change made in relation to the income test that applies to concessional contributions when claiming tax-deductible contributions? My understanding is that the income … [Read more...]
If you earn less than $37,000, and you, or your employer, makes concessional (before-tax) contributions to your super fund, you may get a refund of up to $500 for the contributions tax deducted from the super contributions. 1. What is the super tax refund? The super tax refund is officially known … [Read more...]
Note: The Q&As listed in this article have been revamped and updated for the 2012/2013 year. 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 … [Read more...]
Note: This Super for Beginners article is more complex than other articles in the beginner series but the topic is very important. If you work variable hours over a week, a month or a year, or you are paid per task done, or kilometres driven, then I encourage you to continue reading. Q: How can I … [Read more...]
Many Australians find the stodgy language of superannuation confusing. The terminology associated with superannuation is a barrier to self-education and may deter some Australians from taking early steps to plan for retirement. Millions of Australians care about their super account even though they … [Read more...]
Q. How do I find out where my super contributions end up? What I mean is, how do I find out the name of my super fund? Your question is a popular one in Australia, even though super fund members receive member statements from their super funds every year. Know the name of your super fund If … [Read more...]
