The world of superannuation contributions
Source: Taxation In Australia Journal Article
Published Date: 1 Jun 2012
The rules which govern superannuation contributions and, in particular, the excess contributions tax and the imposition of caps on contributions are extremely complex and subject to frequent change. The Australian Taxation Office has discretion to disregard or allocate to another financial year all or part of a superannuation contribution in very limited circumstances. For these reasons, it is essential that people who give advice on contributions have a thorough understanding of the rules.
This article examines a number of common mistakes with regard to both concessional contributions and non-concessional contributions that create adverse tax consequences. Examples are provided.
The article also refers to a recent ATO interpretative decision which appears to make it possible to avoid excess contributions tax, yet also gain a deduction, in particular circumstances, and to the practice of in specie transfers. In the author’s view, the current draconian approach under the cap regime needs to be revisited and changes made.
Sorry, this is subscriber only content.
To gain access to this material and much more - Subscribe Now.
(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).
Already a Subscriber? Login now
Details
- Published By: Mike Mitchell
- Published On:1 Jun 2012
The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.
Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.
The Tax Institute
(ABN 45 008 392 372 (PRV14016))
("TTI")
The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009.
Copyright Statement
All materials provided on this site are protected by copyright and are owned by or licensed to TTI.
Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.
Tags
Share this page