Case Study – Over 50’s Concessional Cap Reduction

Case StudyFrom 1 July 2012, all taxpayers aged 50 and over will have their concessional contributions cap reduced to bring it in line with all taxpayers.


Blake (aged 54) earns a salary of $100,000 per year. As he is nearing retirement, for the previous two years (2010/2011and 2011/2012) Blake has sacrificed $20,000 of his salary into superannuation, with his employer agreeing to still calculate its 9% SG contribution on the $100,000.


As he is 50 or over, Blake is now subject to the reduced $25,000 concessional cap. Unless he urgently reviews his salary sacrifice arrangement with his employer, his $29,000 worth of contributions will lead to him paying at least 31.5% excess contributions tax on the $4,000 which exceeds the cap (excess tax due $1,260 in total).


About SuperBenefitnews

Self-Managed Superannuation Service Providers in Australia. SuperBenefit will SET UP your SMSF and provide investment education for a better result. We take care of all your administration, accounting, ATO lodgement and audit of SMSFs, working with you and your advisors. If you want advice we can arrange one of our recommended advisors and accountants to meet with you, as we do not give advice, but take instruction only. Take control of your super, including property shares and other assets. Learn how to be your own advisor - make better decisions - by being mentored and coached to invest your own super wisely and strategically by qualified partners. Book to come to an event to find out more, or - Call us 0407 361 596, no obligation FREE strategy call.
This entry was posted in Retirement Planning, Super Tax and tagged , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s