superannuation

What is my superannuation taxed at?

Superannuation can be a tax-effective way of saving for retirement and it is well known that employers are required to contribute to their employee’s superannuation funds (Funds) separate to taxable income.[1]  However, taxes still apply to all aspects of Funds.  The rate used differs depending on what is being taxed.  [Read more…]

What is Division 293 tax?

The normal rate at which pre-tax superannuation contributions in excess of $25,000 (Contributions) are taxed is 15% as prescribed by section 291.15 of the Income Tax Assessment Act 1997 (Cth) (ITAA).[1]  However, section 293.15 of the ITAA  includes an additional tax on Contributions (Division 293 Tax) that applies subject to certain criteria.[2]  This article discusses the Division 293 Tax, and to whom it applies.  Superannuation contributions equal to or below $25,000 are referred to as Low Tax Contributions. [Read more…]

Superannuation changes: Are you ready?

The Australian Government initiated a series of changes in superannuation entitlements, the first of which came into force in July 2012.

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