Contributions to superannuation

    • Generally very tax effective in the fund as maximum tax rate of 15%, discounted capital gains taxed at 10% and in the retirement pension paying phase income is tax-free!
    • Concessional (deductible) contributions of up to $27,500 per annum
    • Catch up concessional contributions available from 2019 and subsequent years, where total superannuation balance is less than $500,000
    • Non-concessional (non-deductible) contributions of up to $110,000 per annum
    • Possible bring forward of three years non-concessional (non-deductible) contributions totalling $330,000 subject to total superannuation balance being below the prescribed threshold and taxpayer less than 67 years
    • No work test for 65 and 66 year old contributors and no work test for those 67 to 74 years likely from 1/07/2022
    • Downsizer contributions of up to $300,000 for each owner over 65 years, may be made and are not constrained by the total superannuation balance nor subject to the general contributions cap, however property ownership of ten years and contribution within 90 days of the change of ownership (contract date) necessary
  • Capital gains tax small business concessions under the “15 year exemption” and the “retirement exemption” for disposals of active assets of small business allow contributions of capital proceeds or capital gain:
“15 year exemption” “retirement exemption”
capital proceeds of up to $1,615,000 capital gain of up to $500,000 (lifetime limit)

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