ANZ Smart Choice Super Investor Update : Investor Update 2012
Know your contributions caps to prevent excess contributions tax The Government has imposed caps to both concessional (before-tax) and non-concessional (after-tax) contributions to your super. Going over your limits will attract excess contributions tax. What happens if you exceed the caps? If you exceed the annual concessional contributions cap of $25,000, excess contributions tax of 31.5% will apply to the amount over the cap (in addition to tax on concessional contributions you have already paid). This tax can be paid from your super account on presentation of a release authority issued by the ATO, or can be funded from money you have outside of super. For first time breaches of the concessional contributions cap made from 1 July 2011, you may request excess concessional contributions of up to $10,000 be refunded, with this excess taxed at your marginal tax rate rather than at the excess contributions tax rate of 31.5%. Non-concessional contributions which exceed the non-concessional contributions cap will be taxed at 46.5%. This must be paid from your super account. Changes affecting your contributions you need to know Several important changes to your super have been announced by the Government, but not all are legislated as yet. Below is an update of the changes. Change to contributions cap From 1 July 2012, the concessional contributions cap in 2012/13 and 2013/14 for all individuals is $25,000. The Government has proposed that from 1 July 2014, individuals aged 50 years or older, with super balances below $500,000, may be able to make $25,000 additional concessional contributions over and above the general $25,000 concessional contributions cap.
Member Update Autumn 2013