August 2, 2024

Super savings of low income earners

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From 1 July 2012, the super savings of low income earners will be given a boost, with people earning $37,000 or less per year eligible for up to $500 annually.Deputy Commissioner for Superannuation, Neil Olesen said, “The best part about this contribution is people don’t need to do anything to get it. The ATO will work out their eligibility for them and pay it to their fund – though people can help by providing their TFN to their super fund.”From 1 July onwards, the concessional contributions cap will be $25,000. If you go over the cap by no more than $10,000 in 2012/13 – and it is the first time you have exceeded it – you will be able to take advantage of a once-only offer to have this amount refunded and taxed at the marginal tax rate.The $50,000 transitional cap for people aged 50 or more ceased on 30 June 2012.From 1 July 2012, for those of you fortunate enough to earn an income greater than $300,000, you will have the tax concession on your contributions reduced from 30 per cent to 15 per cent. This reform is aimed at reducing the tax concessions very high income earners receive on their concessional contributions, to align them more closely with the concession received by average income earners.It is estimated that it will affect around 128,000 people in 2012-13.The ATO's eligibility rules and benefits offered change from time to time so it is essential to seek expert advice before taking any action. Contact us for a no obligation, free initial consultation where one of our experienced financial advisers can review if and how this affects you. Book your consultation today.

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