ANZ Smart Choice Super Investor Update : Member Update Autumn 2014
15 2. After-tax contributions These are known as ‘non-concessional’ contributions Generally, these are paid from your after-tax income or existing savings – so you’ve already paid tax at your marginal tax rate Types of non-concessional contributions include: - Any personal contributions you make (for which the ATO does not allow a deduction) - Payments made by your spouse into your account - Before-tax contributions made that have exceeded your before-tax limits (see above) that are not refunded. Unlike before-tax contributions, you’re not restricted to the same limits, instead a higher limit applies: - $150,000 in 2013/14, increasing to $180,000 in 2014/15; or - If you’re less than 65, as at the start of the financial year, you can bring forward up to two years of after-tax contributions - If you exceed these limits, that portion will be subject to tax at your highest marginal tax rate plus Medicare levy. Other types of contributions Government co-contribution: If you earn less than $48,516 and make personal after-tax payments into your super before 30 June 2014, you may be entitled to receive a Government co-contribution of up to $500. This only applies if you earn up to $48,516. You don’t even need to apply for it. The Government will automatically pay it directly into your ANZ Smart Choice Super account. Low Income Superannuation contribution: If you’re eligible and on track to earn up to $37,000 in 2013/14 tax year, the Government will pay up to $500 into your super fund, based on a calculation of 15% of any before-tax contributions made by you or your employer during the year. Like the co-contribution, you don’t need to do anything to receive this payment.* * The Government has proposed to abolish the Low Income Superannuation contribution from 1 July 2013, but this has not yet been legislated. Online Tip: To see if you’re eligible, log onto your ANZ Internet Banking, click on your super account, and check out the online co-contribution calculator. 15 If you are thinking about making additional contributions to your super over and above your employer’s mandatory payments it is important that you know your contributions caps to ensure you don’t exceed them and pay additional tax.
Member Update Summer 2014
Member Update Winter 2014