Date posted: Thursday, April 24, 2014
Some employers may be a bit confused by the recent changes made by the ATO to the superannuation rates and caps for 2014/15.
The amount contributed to super each financial year, is capped for tax purposes. Contributions above these caps are at risk of having to pay extra tax.
Factors impacting on the cap amount include:
- The superannuation holder’s age
- Whether the contributions are concessional or non-concessional contributions.
Concessional contributions are from before-tax income and are most commonly made up of employer contributions. Non-concessional contributions are from after-tax income and come from personal contributions.
To find out the current threshold on the superannuation concessional contributions cap then be sure to visit this link via the Australian Tax Office. This web page highlights the changes for the 2014/15 financial year.
Do you have more super questions? You can find out more by giving us a call, sending us an email or booking in for a visit. We specialise in servicing individuals and businesses in the South Eastern Suburbs including Pakenham, Lakeside, Berwick, Nar Nar Goon, Garfield, Tynong and Koo Wee Rup.
Sign up with Pakenham Taxation + Accounting to receive tips on how to better manage your personal and business tax.