Concessional contributions are those contributions for which a tax deduction is claimed (these include personal contributions for the self employed or employer-sponsored/salary sacrifice contributions). These concessional contributions are taxed at a standard rate of 15% inside your super fund.There is a limit to the amount you can claim as a tax deduction and therefore receive that concessional tax rate. The amount of this cap for 2009/10 is $25,000.If you claim deductions for an amount higher than the cap is that the excess contribution (above the cap) will be taxed at 31.5% (including Medicare).Once the tax office assesses that this additional tax is payable, you can elect to pay it either from your super account or from other savings.There are some special transitional arrangements available to anyone aged 50 or over during the period between 1 July 2007 to 20 June 2012. If this applies to you then you can claim a deduction for contributions up to $50,000 each year.
These rules are designed to help those who are nearing retirement and may have been adversely affected by the change in rules.
Contact your local representative
The advice contained on the Prime Super website does not take into account your particular objectives, needs or financial situation. Before making a decision regarding the acquisition or disposal of a financial product, you should assess whether the advice is appropriate to your objectives, needs or financial situation. You may wish to make this assessment yourself or seek the help of an adviser. Prime Super takes no responsibility for you acting on the information provided. Any decision that you make is at your own risk. Before acquiring a financial product you should obtain a Product Disclosure Statement (PDS) relating to that product and consider the contents of the PDS before making a decision about whether to acquire the product.
Issued by the Trustee: Prime Super Pty Ltd ABN 81 067 241 016 AFSL No. 219723 RSE Licence No. L0000277 Prime Super ABN 60 562 335 823; RN 1000276