Our office is starting to receive the first of many letters from the ATO related to ‘Division 293’ tax on super contributions.
Many senior medical professionals will be familier with these Tax Office notification letters where their pre tax member and employer contributions exceed the age based concessional contribution cap, currently $25,000. They may also know that the additional tax can be paid from their own pockets or from their superannuation fund, provided the necessary paperwork is completed in time.
What they may not be familier with is the change to contributions tax for individuals earning more than $300,000 pa. This is the first year notification letters will include the increase in superannuation contributions tax from 15% to 30% for these individuals, which could see high income earning individuals paying additional contributions tax of up to $3,750!
Although this change potentially creates additional correspondence and the payment of additional tax, it is important to understand your super fund can be directed to pay the tax if you action the notification in a timely manner.
|Tags: News Tax|
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