• A wide range of expertise

    Our clients include individuals, professionals and small, medium and family businesses.

  • See beyond the numbers
  • We have the experience

    TWF Partners has been in existence for over 30 years.

  • Turning your vision into value
  • Providing a range of services

    to help you meet your taxation, financial and corporate requirements.

Extra Tax on Superannuation Contribution - Last Year

 

As part of last year’s budget measures, the Government introduced a superannuation contributions tax on “high-wealth” individuals .....

... with more than $300,000 adjusted taxable income.  

 

     

 

The extra tax is 15% of their deductible superannuation contributions.  That becomes a total of 30%.

This can be paid personally or paid through the superannuation fund.  If the superannuation fund pays this amount, this is done by completing the release authority form and provided this is to the Trustees of the fund within 120 days of the date of the letter (which is much later than the due date).

Although this will seem like a penalty, most will still be better off because the marginal tax rate of 47% (in 2013) is still higher the 30% total tax on the contribution.

It is not likely to be repealed by the new government, desperate for tax measures to plug the budget deficit.

Assessments are being issued with the label - Div 293 Deferred Debt.

One additionally annoying feature is the short time to pay – the due date is only shown on the Notice of Assessment – usually much less than 30 days.

 

Hot Issues

 

Taxation rulings and documentation search