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I had no idea where my lost super was or the names of the funds. I just new it was scattered everywhere and I should definitely have more than $3,000 in my super. Australian Super Finder found all 7 of my funds and now my balance is almost $50,000. Thank you so much for getting my super back on track. ? Leonie, Thomastown VIC


Super Facts and Tips

Double Contributions Tax for More High-Income Earners

At present (and up until 30 June 2017), anybody earning an adjusted gross income of more than $300,000 pays an additional 15% tax over concessional or before-tax super contributions.

Last April 2015, the ALP revealed an election policy to bring the earnings thresholds down to $250,000, and on 3 May 2016, the Coalition government announced its intent to lower the threshold to $250,000, to work from 1 July 2017.

Last May 3 2016, as a part of the 2016 Federal Spending plan, the Coalition stated that it wants to lessen the earnings to $250,000 while imposing extra contributions on tax, effective July 1 2017. Given that both major parties support this step, you can anticipate the income threshold for the additional contribution tax on the concessional contributions of high-income earners to be reduced to $250,000 starting July 2017.

When the earnings limit is reduced, this means more Australians will pay 30% tax on super contributions, and this procedure will raise $2.5 billion over four years, according to the Coalition government.

Currently, anybody with an adjusted gross income of more than $300,000 (including rental building losses and other products) in a financial year will now pay 30% tax on concessional contributions into a superannuation fund, and this doubles the super contributions tax bill for the high-income earners.

The regular contributions tax is a flat rate of 15%, relevant to all concessional contributions of taxpayers with an adjusted gross income of less than $300,000.

The Added Tax on Concessional Super Contributions

The added tax over concessional superannuation contributions for earners with high income is called 'Division 293 tax' - payable after the taxpayer lodges his/her tax return.

Concessional contributions cover SG or Superannuation Guarantee contributions, tax-deductible superannuation contributions, and salary sacrifice contributions.

If you have a definite benefit fund (unfunded or funded plans), and then concessional contributions for the superannuation contributions Department 293 tax (additional 15% tax over concessional contributions) includes all your notional company contributions. According to the ATO, an ATO decision relating to a specified benefit fund member's Department 293 tax might include deferrals of payment dates of the Division 293 tax till the super benefit is paid to the super member.

Double tax for the high-income earners has applied given that 1 July 2012 (for the 2012/2013 year). The additional tax was revealed by the previous ALP federal government in the 2012 Federal Budget plan and was not rescinded by the Coalition government. The Liberal party introduced a comparable tax in 1996, and it wounded up costing all super fund members through an enormous hike in administrative expenses. The unexpected obstacle presented by the Liberal party, cost the super industry and fund members as much cash to administer the super surcharge, as the government gathered in extra super taxes.

If you are curious about this news, then feel free to learn more about it at www.australiansuperfinder.com.au

All information on this website is of a general nature only. We have not taken into account your financial situation, needs or objectives. You need to make up your own mind and ascertain yourself if it is right for you. We recommend you read the product disclosure statement(s) and the financial services guide before making any financial decision.

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