excess contributions tax
Some of the changes to superannuation announced in the Federal Budget 09/10 may impact your tax liability and your retirement plans.
You may be aware that superannuation contributions attract a concessional tax rate of only 15% when made within the limits set by the government each year. From 1 July 2009 these concessionally taxed contribution limits have been significantly reduced. Any contributions made above the new reduced limits will attract the highest marginal tax rate of 45%.
These limits also impact members in Defined Benefit Super Plans.
Concessional Contributions Cap effective 1July 09. Includes all before tax contributions to super i.e. salary sacrifice, superannuation guarantee (SGC) and any additional personal or employer contributions
Under age 50 $25,000
Over age 50 (until 30/6/2012) $50,000
If you make salary sacrifice contributions, receive additional employer contributions or are a high income earner; you should review your current arrangements.
Simply reducing your contribution levels to fall within the limits may impact your retirement savings strategy. Therefore, it’s important to speak to a qualified financial adviser to identify the most appropriate strategy to manage your current tax liability while planning for the future.
Contact us today to review your contributions and your retirement plans.