- Sunday 11 June 2017
- 0 Comments
by Steve Perrica
There are new super rules that commenced on 1 July 2017.
The good
Anyone who is eligible to make voluntary super contributions will also be eligible to make personal concessional (tax-deductible) contributions. Currently, people earning more than 10% of their income as an employee (i.e. salary and wages) cannot make a tax-deductible super contribution, so this recent change should provide greater flexibility with:
- end of year super top-ups by making personal concessional contributions to use up any remaining concessional contribution cap;
- deciding how to contribute bonuses, annual leave and long service leave; or
- tax-effectively contributing lump sum leave payments received upon termination of employment.
The bad
New Concessional Contribution Cap of $25 000 for everyone. This may create problems for:
- Anyone contributing to a superfund separate to their Employer fund
- Anyone in a defined benefit fund packaging Life Cover Super Premiums
- Anyone in a constitutionally protected fund and packaging Life Cover Super Premiums
The ugly
Excess concessional contributions will be taxed at 49% – 15% = 34%.
Download and save the below infographic for handy tips on deductions for teachers.
