Excess super contributions amendments passed

capital-gains-tax/assistant-treasurer/capital-gains/federal-government/

5 March 2015
| By Malavika |
image
image
expand image

The Federal Government has passed legislation through Parliament to remove punitive tax rates on excess superannuation contributions, with the support of the opposition.

In a statement Assistant Treasurer Josh Frydenberg said that the Tax and Superannuation Laws Amendment (2014 Measures No.7) Bill 2014 makes sure unintentional breaches of the on-concessional contributions cap do not result in a "disproportionate" penalty.

"The new approach strikes a right balance between fairness to those who make mistakes and discouragement of those who embark on aggressive tax planning strategies," Frydenberg said.

The amendments also include improvements to capital gains tax rules, and involuntary super rollovers, and it will also move tax complaints investigation to the inspector-general of tax.

Individuals can now take out from super an amount equal to their super contributions in excess of non-concessional contributions cap and an additional 85 per cent of related earnings amount.

All earnings will be included in their assessable income and taxed at their marginal tax rate. Individuals will be eligible to a non-refundable tax-offset of 15 per cent of the earnings amount.

Read more about:

AUTHOR

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 4 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

5 months ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

2 weeks 1 day ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 6 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks 4 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND