Excess superannuation contributions taxed at 93 percent

Did you know that any money you put into your superannuation fund that exceeds your annual contributions cap could attract a penalty tax rate of 93 percent?

Each year you can put up to $25,000 into super as a concessional contribution, such as an employer contribution, which will be taxed at a rate of 15 percent (in the superannuation fund).

You can put in more than this amount, but tax of 46.5 percent is payable on extra contributions over the nonconcessional contributions cap, a separate and additional cap of $150,000 per year.

To keep up to date with Tax Laws, why not inquire about TimeBase's Point-in-Time Tax Service, just one of a range of Australian Legislation services provided by TimeBase.

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