My super company cant tell me what tax i will pay if i exceed my cap. They keep referring to the ATO. The ATO were vague also so i thought i would ask the brains trust. If i have 10000 savings that i have already paid my marginal tax rate on, and i make an extr contribution to my super and i have already reached the cap, what tax do i pay? Is it just the 37c marginal and the 15c super tax on every dollar over 27500 or is there something more?
Sounds like you are talking about a non-concessional (post-tax) contribution. If so, you don't need to worry about the $27,500 limit as that is just for concessional (pre-tax) contributions.
The cap for non-concessional contributions was lifted to $110,000 for this financial year, so if you're only talking about $10,000, you won't be paying any tax on it.
Super can be a good place to park cash that you know you're not going to need for a long time since you only pay 15% on the earnings inside super instead of your marginal rate. However, if you have kids over 18 that aren't really earning anything, it's worth looking at a family trust. That way you can pay zero tax on the first $18k of investment earnings per kid while still having access to the cash if you need it.
yes concessional contributions. maximising the tax benefit by contributing all the way to the cap and also utilising the previous three year non maximised caps as is the last year I can do as super balance will be too high next year. Just wanted to know what would happen if I stuffed up but they give you options and you can withdraw back out (minus the 15%) if you accidentally go over
Great. That means 293 applies to me. My tiny IQ means I don't understand that I'm a lesser human than those exempt, and Australian tax law is so complicated that if I do my own taxes I can't be charged with not fully understanding all of it.
