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Take Advantage of the Concessional Contribution Caps to Help You Make the Most Out of Your Super and Save You in Tax

Take Advantage of the Concessional Contribution Caps to Help You Make the Most Out of Your Super and Save You in Tax

Take advantage of the concessional contribution caps before the end of the financial year to help you make the most out of your Super and save you in tax. Concessional contributions are taxed at 15%*, which is generally less than tax paid on your salary or wages. By making contributions up to the cap before the end of the financial year**, you could save yourself thousands in personal tax you would otherwise pay to the tax office and boost your retirement savings.

 

What are Concessional Contributions?

Concessional contributions generally include:

  • employer contributions, including superannuation guarantee, salary sacrifice contributions and any other additional employer contributions.
  • personal contributions for which a tax deduction is allowed.

Please be aware that concessional contributions are capped at $25,000 per financial year, or $35,000 for people aged 59 and over on 30 June 2013.

It is important to be aware of these caps because contributions that exceed the concessional contribution caps attract excess contribution tax penalties.

* The Government has proposed to tax certain concessional contribution at a higher rate of 30% for individuals with adjusted taxable income over $300,000.
** We recommend contributions be made at least by 24 June, 2014 in order to allow for contribution to be received by fund before 30 June 2014.

Witsava Shawcross
Financial Adviser

witsava.shawcross@mckinleyplowman.com.au

 

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