Posted by: Kylie Wilson
As a consequence of the Government's 2012/2013 Federal Budget announcement, the Concessional Contribution Cap for superannuation for all individuals regardless of their age or account balances in superannuation will be $25,000 from 1 July 2012 until 1 July 2014.
The Government had previously announced a measure that would have provided a $50,000 Concessional Cap for individuals over 50 with superannuation account balances under $500,000 from 1 July 2012. This has now been deferred until 1 July 2014.
Therefore the higher caps for Concessional Contributions for individuals over 50 will no longer apply, regardless of the individual's account balance in Super, from 1 July 2012. Care will need to be taken to ensure that Excess Contributions Tax is not incurred by breaching the $25,000 cap after 1 July 2012.
In a further, although not unexpected measure, the Government has doubled the contributions tax on concessional contributions for indivduals with adjustable incomes of $300,000 or more.
If you need assistance with your SMSF or asset protection and succession planning, contact our senior specialist, Kylie Wilson on 07 3234 3102 or email.
