Planning Issues
Written by Tony Gray   
Monday, 13 July 2009 10:45

Planning Issues

A reminder that the new Concessional Contribution rules are now in place, limiting the maximum contribution to superannuation (where a tax deduction is claimed, or the contribution is made by an entity on your behalf) to $50,000 for those aged 50 or over and $25,000 for those aged under 50.  The limit will fall to $25,000 for everyone after June 2012.
  
It is very important to not exceed the Concession Contribution cap, since apart from the standard 15% contributions tax, an additional 31.5% tax will apply on the excess - making total tax equivalent to the top marginal rate of tax (46.5%).  Excess contributions will also count towards the Non Concessional Contribution cap (where no tax deduction is claimed), which remains $150,000 per annum.  Those who exceed both the Concessional and Non-concessional caps may be taxed at an effective tax rate of 93% - so extreme caution is necessary and reviewing salary sacrifice arrangements early in the financial year recommended.  

Also a reminder that fringe benefits, "investment losses" (i.e. negative gearing expenses) and superannuation contributions above the SGC rate are now counted towards income when calculating entitlement to the co-contribution benefit and family tax benefits.

Please treat the above comments as general in nature, with no action to occur in reliance without first seeking advice personal to your position.

Last Updated on Saturday, 18 July 2009 23:10
 

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