Cont & Fund Tax Info

Concessional Contributions are taxed 15% with special provisions for high and low earners.  Concessional contributions include employer contributions, salary sacrifice contributions and personal contributions claimed as a tax deduction by a self-employed person.

Contribution Div 293 Tax

From 1 July 2012 high income earners will pay an extra 15% tax on concessional contributions ie 30%.   High income is defined as someone with earning of $250,000 (previously $300,000) or more.  Income for the purposes of this measure includes taxable income, concessional super contributions, adjusted fringe benefits, net investment losses and certain government benefits, but not drawdowns from pension accounts.  Where income excluding the concessional contributions is less than $250,000, but inclusion of the concessional contributions exceed the threshold, the 30% tax applies only to the part of the contribution in excess of $250,000.  The 30% tax rate does not apply to any portion of the concessional contribution that exceeds the concessional contribution cap.

Fund Income Tax

Earnings on assets backing accumulation accounts including realised capital gains are taxed at 15%. There is a third reduction in the Capital Gains if held for more than a year. All superannuation fund earning including capital gains for assets backing superannuation pensions are tax free - called Exempt Current Pension Income (ECPI).

Allowable Contributions

Mandated employer contributions can be accepted regardless of age or number of hours worked. Non-mandated can be accepted for members under 65 and if the work test is met for those aged 65-75. Over 75 a fund cannot accept any non-mandated contributions. Where the total super balance is greater than or equal to the $1,600,000 general transfer balance cap on 30 June of the previous financial year, no non-concessional contributions are possible.