Avoid paying penalty taxes on excess contributions
The Government has capped the amount of ‘concessional contributions’ you can make to your super. ‘Concessional contributions’ include employer contributions and salary sacrifice contributions. Contributions above the set caps will attract 31.5% penalty tax.
For 2010-11 the caps are:
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Members under 50 years at 30/06/11: |
$25,000 |
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Members 50 years and over at 30/06/11: |
$50,000 |
in planning your contributions for 2010/11 you need to consider these caps as we are not able to refund contributions.
Penalty tax also applies to personal contributions that are above set caps:
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Members under 65 years of age:
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$150,000 p.a. or $450,000 over 3 years.
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Members 65 – 74 years:
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a work test applies; then the cap applies
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