Can I make concessional super contributions?
Can I make concessional super contributions?
You may be able to make pre-tax, or ‘concessional’ contributions to your super by asking your employer to deposit a portion of your weekly, fortnightly or monthly salary directly into your super account instead of your bank account. This type of pre-tax super contribution is known as salary sacrificing.
What is the concessional contributions cap for 2020?
$25,000
From 1 July 2021, the general concessional contributions cap is $27,500 for all individuals regardless of age. For the 2017-18, 2018-19, 2019-20 and 2020-21 financial years, the general concessional contributions cap is $25,000 for all individuals regardless of age.
What is the superannuation cap for 2021?
$27,500
From 1 July 2021, the concessional contributions cap is $27,500. The increase is a result of indexation in line with average weekly ordinary time earnings (AWOTE). From 1 July 2017 to 30 June 2021, the concessional contribution cap for each year is $25,000.
Can you withdraw concessional contributions?
If you exceed your concessional contributions caps, you may elect to withdraw up to 85% of your excess concessional contributions from your super fund to help pay your income tax liability.
What is unused concessional contributions cap?
An unused cap amount occurs when the concessional contributions you made in a financial year were less than your general concessional contributions cap. Example: Carry-forward concessional contributions (one year) Anna’s concessional contribution cap for the 2019–20 year is $25,000.
What are concessional super contributions?
Concessional super contributions are payments put into your super fund from your pre-tax income and are tax deductable for self-employed people. They include your employer’s super guarantee (SG) contributions. Concessional super contributions are taxed at 15% when they are received by your super fund.
What happens if I go over the concessional contributions cap?
The short answer is, if you go over your concessional contributions cap, the excess amount you contributed is included in the amount of assessable income in your tax return and you pay tax on it at your marginal tax rate. You also receive an income tax Notice of Assessment.
What is excess concessional contributions?
Excess concessional contributions charge This charge is in addition to the extra tax you pay when your excess contributions are included in your assessable income. It is applied because the tax on the excess concessional contributions is collected later than normal income tax.
What happens if I go over my concessional contribution cap?
What are super concessional contributions?
Concessional super contributions are payments put into your super fund from your pre-tax income and are tax deductable for self-employed people. They include your employer’s super guarantee (SG) contributions. Generally, making extra concessional contributions is tax effective if you earn more than $37,000 per year.
Can I use unused concessional contributions?
To use your unused cap amounts you need to meet two conditions: Your total super balance at the end of 30 June of the previous financial year is less than $500,000. You made concessional contributions in the financial year that exceeded your general concessional contributions cap.
What is the general concessional contributions cap?
From 1 July 2017 to 30 June 2021 the general concessional contributions cap is $25,000. From the 2017–18 financial year, the general concessional contributions cap is not calculated based on age. from the 2014–15 to the 2016–17 financial year if you were 49 years or over on the last day of the previous financial year.
How are concessional contributions taxed on superannuation?
If you have more than one fund, all concessional contributions made to all of your funds are added together and counted towards the concessional contributions cap. For 2012–13 and earlier years, excess concessional contributions were taxed at 46.5% (15% levied in the super fund, with an additional 31.5% payable).
What are the carry-forward arrangements for concessional contributions?
The carry-forward arrangements involve accessing unused concessional cap amounts from previous years. An unused cap amount occurs when the concessional contributions you made in a financial year were less than your general concessional contributions cap. Anna’s concessional contribution cap for the 2019–20 year is $25,000.
Do I have to pay tax on my concessional contributions?
Need to know: If your income plus any concessional (before-tax) super contributions totals more than $250,000 in a particular financial year, you may be liable for additional tax on some or all of your concessional contributions.
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