Concessional caps don’t apply to untaxed super
While the debate around the increase of super concessional contributions caps for over 50s continues, it pays to remember that untaxed schemes will not be affected.
GESB chief executive Michele Dolin said that there was no cap on contributions to untaxed schemes such as GESB’s West State Super scheme, but said this was offset by a ceiling on how much the retirement benefit was concessionally taxed.
“Currently, untaxed retirement benefits can be as high as $1.55 million before the top marginal tax rate is applied,” she said.
Despite this, Dolin said that the industry as a whole was supportive of extending the contributions cap, but expected there to be further discussion before the detail is finalised.
“Superannuation is the most tax effective way to save for later life. A permanent extension of the contribution cap for taxed fudns means that more people will be able to increase their retirement savings,” she said.
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