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  • Super contributions – too much can mean extra tax

    There are caps on the amount you can contribute to your super each financial year to be taxed at lower rates. If you contribute over these caps, you may have to pay extra tax, which could be as high as 94% in some cases.

    The cap amount and how much extra tax you have to pay may depend on your age, which financial year your contributions relate to, and whether the contributions are:

    • concessional (before tax)
    • non-concessional (after tax).

    The cap amount and how much extra tax may also depend on whether you elect to have your excess contributions released from super after we send you a determination.

    From 1 July 2017, your non-concessional contributions cap will be nil if you have a total superannuation balance greater than or equal to $1.6 million at the end of 30 June of the previous financial year.

    If your non-concessional cap is nil, any non-concessional contributions you make, plus any excess concessional contributions you elect not to release (or are unable to release), will be excess non-concessional contributions. You will pay excess contributions tax of 94% on these contributions.

    To find out how much you contributed into your super fund to ensure you don’t go over the caps, contact your super fund or phone us on 13 10 20.

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      Last modified: 04 Oct 2019QC 19749