Planning to contribute funds to your superannuation? Please ensure you are aware of the cap applicable + items counted towards it to avoid paying extra tax.
Things to consider:
> Had a pay rise? This would mean an increase to the amount your employer contributes which counts towards the superannuation cap.
> Salary sacrifice? This amount also counts towards your cap in addition to the employer’s compulsory (currently 9%) contribution.
> Does your employer pay expenses such as super admin fees, insurance premiums or other similar costs? These expenses also count towards your cap.
> Timing of contribution – If your contribution is made in late June but your Fund does not receive the money till early July, the contributions will be counted as part of your cap in the following year.
From 1/7/12, the concessional contributions (formal way of saying employer contributions) cap is $25,000 regardless of age or superannuation balance.
For more information on the above please visit the ATO or contact us for more customised advice for your particular situation.