Superannuation Legislation and Threshold Changes 2014

Wed 18th Jun, 2014

June is the month to prepare for the new financial year changes that will impact your business.

Below are changes we would like to draw your attention to:

The contribution cap has 2 parts:

Superannuation - Option to withdraw excess contribution

For any excess non-concessional contributions made after 1 July 2013, the government will allow individuals to withdraw those excess contributions and associated earnings. If an individual chooses this option, no excess contributions tax will be payable and any related earnings will be taxed at the individual's marginal tax rate.

Individuals who leave their excess non-concessional contributions in their superannuation fund will continue to be taxed on these contributions at the top marginal tax rate.

Non-concessional contributions in excess of a person's cap are currently taxed at 46.5% (47% from 1 July 2014). The tax liability is currently levied on the individual. The individual must withdraw an amount from their superannuation fund equal, to the tax liability by providing, a release authority to their superannuation provider within 21 days.

2014 Tax Rates & Tax Free Threshold

The proposed increase in the tax free threshold will not proceed until the next financial year. From 1 July 2015, the tax free threshold will increase to $19,400.

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