From 1st July 2013 onwards, individuals exceeding the upper cap of their concessional contributions will find the extra amount included in their assessable income. This amount will be chargeable at the marginal tax rate and will also attract an interest.
SuperStream, the new payment standard that marks the shift from manual to electronic Super contributions, has got its first kick. An article on the website SMSF Adviser informs that SuperStream contributions processing has started.
Exceeding the upper ceiling for super contributions can attract penalty. It is not the first time that somebody is saying this. On the morning of 1 July, the caps changed both for concessional and non-concessional contributions. For at least some time, the super contribution caps are expected to stay where they are.
You know the grind if you exceed the upper ceiling on your Super contributions. This is probably why you will be none the poorer knowing where you exactly stand. The sun rose on the first of July this year, changing, for at least the foreseeable future, the super contribution caps.
If a property promoter without an AFS license hogwashes you into using your SMSF for property investment, chances are they have vested interest in mind. The deal might be infested with bottlenecks all along the way. If however, you use solid professional guidance from people who know the nitty-gritty of investing the SMSF purse into real estate, you can come out trumps with the strategy.
In an article for the website Super Review, Jason Spits talks about a Catch Up concessional contribution cap that is meant to aid those workers who have been out/away from work for long. Such a cap may help workers compensate for the shortage in their Super accumulation.
There are men and women who have to take the hard route of remaining jobless to raise their families. In prolonged absence of Super guarantee contributions, their retirement nest egg thins out. To add to the woe, they find that the upper cap for annual concessional contribution is $30,000 ($35,000 for those aged above 49), which is not enough to cover for the years they have lost. This is where, says Spits, additional concessional contribution can help.
You can read the original article here.
Owners of small businesses contribute to their employees’ super fund to gain tax rebates. The strategy works pretty fine during the end of a given financial year. However, if not applied diligently, the strategy may not solve its intended purpose.
On the website of the Inspector General of Taxation (IGT), a review in regards to the compliance required for excess contributions tax is being posted. Agreed that the concessional contributions corner a big pie of discussions but no one can deny that the exorbitant tax on non-concessional contribution is also a point of debate.