Concessional Contributions to super are the contributions made by the employer, through salary sacrifice or by self employed people who intend to claim the deduction.
Concessional contributions are taxed at 15% inside the super fund and the payer is able to claim a deduction for the payment.
As at the 01/07/2012 these caps will change.
- For people under age 50 years old the caps will remain at $25,000pa.
- For those over age 50 years old the cap will reduce from $50,000 to $25,000pa.
It is important if you are over age 50 and currently salary sacrificing into super, that you review this with your pay office before 01/07/2012.
If you go over the cap, you can expect heavy penalties from the ATO.
There is current legislation being put forward to keep the concessional cap at $50,000 for those over age 50 with a super balance under $500,000.
Please note, that this has not been passed as of yet so until it is I recommend that you plan for the drop in the contribution caps.
For more information please contact us on 07 4771 4577.
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