What Are The Changes to Super Tax Deductions?

There were some changes to the taxation of superannuation contributions, as of the 1st July, 2013. Here's a quick summary of the changes to tax-deductible superannuation contributions:

Tax-Deductible Super Contributions

In their wisdom, some years ago now, the government thought it would be a great idea to change the reference term for tax-deductible super contributions from the easy-to-remember 'Tax Deductible Contributions', to the what-the 'Concessional Contributions'. Isn't so much easier to remember 'Concessional', rather than 'Tax-Deductible'.

So, as of the 1st July 2013, the Concessional Contributions Caps (for the Financial Year) are:

• $25,000 if your under 59 years of age, as at the 1st July 2013
• $35,000 if you are 59+ years of age, as at the 1st July 2013

Employer Contributions Included

Don't forget, the compulsory contributions made by your employer are included in the Concessional Contribution Cap, and there are significant consequences if you exceed the limit (I'll leave that for another blog post), so be careful.

If you're unsure of your Concessional Cap position, Contact Us, for a free financial assessment.