If the fund doesn’t have your TFN, they must withhold an additional amount of 31.5% tax from concessional contributions made to your super account. That means that you are losing 46.5% of your super contributions in taxes paid to the Australian Taxation Office. One of the most important benefits of investing in super is that it is highly tax-effective. By not supplying your TFN, you could be wasting the savings effort by you and/or your employer. If the fund has your TFN, your contributions will only be taxed at 15%.
15th-November-2009 |