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Good Afternoon Reader,
Two common themes are dominating discussion with our clients at present:
- Investment Markets - current state, future direction, how do we invest prudently?
- Tax season is here - how do I pay as little as possible and can I better-plan for next year?
These two themes will be a common feature of our next series of blog posts and we start today with a question that was raised by one of our clients in the area of excess superannuation contributions.
We hope you continue to enjoy our thoughts on wealth and investing.
Warm regards,
Mark La Bozzetta - Eden Wealth Management
Bob: “I want to contribute more to super, but I am already hitting my cap – what are the implications?”
Recent legislative changes have seen the reduction of concessional superannuation contribution limits (employer guarantee & salary sacrifice) from $50,000 to $25,000 for people under the age of 50 years.
Contributions above this concessional cap attract a 31.5% rate of “excess contributions tax”, on top of the initial 15% super contributions tax. While in certain circumstances this may lead to the decision to keep your employer guarantee & salary sacrifice contributions under the concessional cap, high income earners who want to contribute more to super need not be concerned.
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