Business Planning Workshop Register now In this action-packed 2…Read More
Register Now Preview modal- Financial markets are moving and…Read More
Important changes to superannuation for the 2015 Financial Year Posted on October 9, 2018
To assist you in understanding these changes, we provide details about:
Increase in the Superannuation Guarantee Contribution (SGC) – the amount of superannuation which is compulsory for your employer to pay.
Change in concessional contribution caps – the limit in the amount of superannuation contributions you can make before you pay additional tax.
Increase in the Superannuation Guarantee Contribution (SGC)
From 1 July 2014, there are changes to both the superannuation rate and the limit at which an employer can cap contributions.
The compulsory superannuation rate will increase from 9.25% to 9:50%.
The limit at which compulsory employer superannuation contributions can be capped increases from earnings of $192,160 to $197,720. This is known as the Maximum Contributions Base (MCB) and an employer does not have to pay SGC for any earnings above this limit.
Change in concessional contributions caps
The concessional contributions cap is the limit on the amount of superannuation contributions you can make each year before you pay additional tax.
From 1 July 2014, the general concessional cap will increase from $25,000 to $30,000. If you are aged 50 years or over during the 2015 financial year, a higher cap of $35,000 will apply.
For more information or if you have any questions with regards to the superannuation changes, click here.