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#EveryoneNeedsaPlan to Not Exceed Superannuation Div 293 Threshold
Posted by G. Dean McKinnon
on 21 March 2022
An additional 15% Contributions Tax is payable on Concessional Super Contributions where the Division 293 Threshold has been exceeded. This means instead of paying 15% Contributions Tax on your Concessional Super Contributions, you will pay 30%.
The current Division 293 Threshold is $250,000.
Included as "assessable income" in the Division 293 Threshold includes various types of income but the primary income types are your gross wages and the Concessional Super Contribution. For example, if your gross income for the Financial Year was $225,000 and you made the maximum Concessional Super Contribution for the 2022 Financial Year ($27,500) you would be over the threshold by only $2,500 but you will be paying the additional 15% Contributions Tax on the entire $27,500 Concessional Super Contribution.
Understanding and planning your Concessional Super Contribution each Financial Year is crucial to understanding the benefits and taxes applicable, so it is strongly recommended that you seek professional advice regarding your super contributions every year before making the contribution.
GDM has nearly 30 years experience in all things financial, including superannuation, so do not hesitate to contact us and arrange your free initial appointment to discuss your requirements.
The current Division 293 Threshold is $250,000.
Included as "assessable income" in the Division 293 Threshold includes various types of income but the primary income types are your gross wages and the Concessional Super Contribution. For example, if your gross income for the Financial Year was $225,000 and you made the maximum Concessional Super Contribution for the 2022 Financial Year ($27,500) you would be over the threshold by only $2,500 but you will be paying the additional 15% Contributions Tax on the entire $27,500 Concessional Super Contribution.
Understanding and planning your Concessional Super Contribution each Financial Year is crucial to understanding the benefits and taxes applicable, so it is strongly recommended that you seek professional advice regarding your super contributions every year before making the contribution.
GDM has nearly 30 years experience in all things financial, including superannuation, so do not hesitate to contact us and arrange your free initial appointment to discuss your requirements.
Author:G. Dean McKinnon
| Tags:TaxSuperannuation |
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