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New financial year: Time to review super contributions


On 1 July 2012, the concessional contribution cap of $50,000 for people aged 50 years or older ended which means the amount you can contribute to super before tax (concessional contributions) is now $25,000 for everyone.

 

The easiest way to review your contributions is to find out from your fund, the contributions made last financial year or you can also contact your payroll area. When reviewing your contributions don't forget to look at:

  • any contributions your employer makes on your behalf
  • salary sacrifice contributions you have organised with your employer contributions you make if you are self-employed, and
  • notional taxed contributions if you are a member of a defined benefit fund. 

When working out how much you are contributing this year, remember that contributions count in the financial year they are received by your fund, not when the payment was sent.

It's also a good idea to re-check your contributions if you receive a pay rise, bonus or have extra pay periods in a financial year.

Accidentally gone over the concessional cap?

If you accidentally go over the cap by no more than $10,000 in 2012-13, and it's the first time, you may receive a once-only offer to have your excess contributions refunded and taxed at your marginal tax rate, rather than paying excess contributions tax (which may be higher).


Contributions explained:




This article is provided as general information only and does not consider your client's specific situation, objectives or needs. It does not represent accounting advice upon which any person may act. Implementation and suitability requires a detailed analysis of a client's specific circumstances.