Update- Excess Concessional Contributions
Just a gentle reminder that the rules have changed.
If you exceed your concessional contribution limit from the 30 June 2014 financial year onwards the excess amount will be included in your assessable income and taxed at your marginal tax rate along with an additional excess concessional contribution charge.
To assist in paying the liability the ATO will send you an election form allowing you to release up to 85% of your excess concessional contribution from your super fund.
If you choose to make payment via release of your concessional contribution then the amount chosen will not count towards your non-concessional contribution cap.
Note, the concessional contribution limits for 30 June 2014 was $25,000 for under age 59 and $35,000 for age 59 and over as at 30 June 2013 while the concessional contribution limits for 30 June 2015 is $30,000 for under age 49 and $35,000 for age 49 and over as at 30 June 2014.
If this is not clear, please feel free to contact us.
At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me via Contact Us or to call me on +61 2 9267 2322.
9th-October-2014 | 
