Removal of double taxation on excess non concenssional contributions | Accurium

Technical article
New legislation removing the double taxation of after-tax superannuation contributions made in excess of the cap has passed parliament. The new rules apply to non-concessional contributions made in the 2013-14 and later financial years.

The measure was announced in May 2014 and is designed to make the taxation treatment of excess non-concessional contributions fairer. Under previous law excess non-concessional contributions could have been taxed at over 90%. The move brings the treatment of excess non-concessional contributions more closely in line with the treatment of excess concessional contributions which can be withdrawn from the member’s superannuation fund without penalty and added to their individual income for tax purposes.

Disclaimer

This information is provided by Accurium Pty Limited ABN 13 009 492 219 (Accurium). It is factual information only and is not intended to be financial product advice, legal advice or tax advice, and should not be relied upon as such. The information is general in nature and may omit detail that could be significant to your particular circumstances. The information is provided in good faith and derived from sources believed to be accurate and current at the date of publication. While all care has been taken to ensure the information is correct at the time of publishing, superannuation and tax legislation can change from time to time and Accurium is not liable for any loss arising from reliance on this information, including reliance on information that is no longer current. We recommend that you seek appropriate professional advice before making any financial decisions.