Concessional contributions are superannuation contributions in respect of which a tax deduction has been claimed whether those contributions are made by the employer (or a related company of the employer) of the member or by the member themself. These contributions are subject to tax in the super fund at 15%.
SUPERCentral
OK to make a deductible super contribution then cash out?
This very issue was the subject of a recent private binding ruling (released 25 March 2024). The taxpayer had for a number of years made personal superannuation contributions for which the taxpayer claimed a tax deduction. The actual amount of each of these contributions was not provided in the published ruling.
Work Bonus scheme: Two significant changes
Two significant changes have been made to the Work Bonus scheme. These changes apply from 1 January 2024. The first change is that an initial credit of $4,000 will be granted to the “work bonus bank” of each new age pension recipient. The second is that the maximum balance of the “work bonus bank” has been increased to $11,800 (previously the maximum balance was $7,800).
Adult children as tax free dependants
With an increasing number of elderly parents living with their adult children, is it possible that an adult child of a deceased parent could, on the death of the parent, receive their parent’s superannuation tax free?
Downsizing and net sale proceeds: Parton’s Case
This case illustrates the consequence where the net sale proceeds was not entirely applied in the application of the replacement home.
Possible to commence pension with $1.9m+ balance?
Generally pensions cannot be commenced if the initial pension account balance is greater than $1.9m (the current transfer balance cap which applies from 1 July 2023).
Personal transfer balance caps – view now on MyGov
Any super fund member who has commenced an account-based pension since 1 July 2017 can now view their updated personal transfer balance cap by using the MyGov website to access ATO online services.
Pensions – End of financial year actions
Now that the end of the 2022/23 financial year is almost here, superannuation members who are currently receiving pensions need to take certain actions.