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contributions more closely in line with the treatment of excess concessional contributions which can be withdrawn from the member’s superannuation fund without penalty and added to their individual income for tax purposes.
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contributions more closely in line with the treatment of excess concessional contributions which can be withdrawn from the member’s superannuation fund without penalty and added to their individual income for tax purposes.
