| 1. |
How much can I contribute to my super?
$50,000 a year in tax-concessional contributions if you are under age 50 and $100,000 if you are over age 50. All age groups can also make $150,000 a year in non-concessional or after-tax contributions. At any time up until the age of 65, you can bring forward three years of non-concessional contributions into one year.
|
| |
|
| 2. |
How long can I keep contributing to super?
Until you turn 75 if you satisfy a work test after the age of 65. The work test requires you to be gainfully employed, meaning you get paid for the work you do, for 40 hours over a 30 day period in the financial year in which you make any contributions, either concessional or non-concessional. Before 65 you don't have to work in order to contribute.
|
| |
|
| 3. |
Must I take my super as a benefit when I retire?
No, there is no obligation to take any benefits from your super at any time while you are living. Your super account must, however, be transferred to a beneficiary or to your estate on your death. Be aware if you are not taking a pension benefit from super that your investment income and capital profits on investment will be taxable.
|
| |
|
| 4. |
What is my entitlement to transfer investment assets that I own into my super?
This can generally only happen with a self-managed super fund. You can transfer shares that are traded on a stock exchange, units in large public managed funds, and real estate from which a business is being run exclusively. The value must be within the contribution limits. Alternatively your fund can buy these assets from you with no limit. But be aware that any transfer or sale is a disposal of the assets on your part and you will be up for any capital gains tax on any profits.
|
| |
|
| 5. |
Can I transfer a residential rental property into my DIY superfund?
No. Such an asset is subject to restrictions on buying assets from yourself or someone who is related to you.
|
| |
|
| 6. |
How early can I access my super?
From the age of 55 as tax-concessional income under a transition to retirement income stream. Lump sums are largely restricted until retirement from work or turning 65.
|
| |
|
| 7. |
What are the tax rules for taking a pension or income stream?
If you are under age 55 your pension income is fully taxable with a 15 percent tax rebate. After 60 the income is tax free.
|
| |
|
| 8. |
What are the penalties for excessive super contributions?
If you contribute more than $50,000 or $100,000 concessional contributions limits, there will be a 31.5 percent penalty tax plus the 15 percent contributions tax normally payable. The gross excess contribution amount is then added to your $150,000 a year non-concessional limit, and if it exceeds this limit, a further 46.5 percent in tax will be deducted from the excess amount. It is therefore possible that 93 percent tax (15 percent plus 31.5 percent plus 46.5 percent) could be due on any concessional contribution classified as excessive.
|
| |
|
| 9. |
Are there any other contribution restrictions?
It is essential you provide your super fund with your tax file number, as contributions are now allowed without this.
|
| |
|
| 10. |
What is the government co-contribution all about?
It is an entitlement to a tax free contribution of up to $1500 from the government for those who this year will earn less than $58,980, so long as you make a non-concessional contribution of at least $1000. The full amount will go to those who earn less than $28,980, and it phases out from there to the upper $58,980 limit. You must be younger than 71 at the end of the financial year in which the non-concession contribution is made. At least 10 percent of the income must be earned as an employee and, for those who are self-employed, 10 percent must come from carrying on a business.
|
