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%.
superannuation
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?
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.
Transfer balance cap set to increase to $1.9m
The transfer balance cap, which is currently $1.7m, will be increased to $1.9m with effect on 1 July 2023. The increase of $200,000 in the gap is due to indexation.
One modest change that affects less than 0.5% of all Australians
With these words the Treasurer (and also the Assistant Treasurer and Minister for Financial Services) advised that the Government will impose a special rate of earnings tax of 30% on earnings on super balances of $3m and above.
Last minute withdrawals before time is called
Is it possible to make a last minute withdrawal before you die and the payment, if made after you have died, still be treated as being tax free? Well Yes – according to a recent private binding ruling from the Commissioner.