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ATO tax hit for this super mistake


Money
by Anthony Keane
Premium Content
Subscriber only
Super fund members are being urged to check their contributions and caps as the end of the 2020-21 financial year approaches.
Great tax benefits are available to people who pump extra cash into their super through salary sacrifice or one-off payments, and the Australian Taxation Office has issued an update reminding individuals that paying too much leads to penalties.
The current cap for tax-deductible contributions, known as concessional contributions, is $25,000 a year, rising to $27,500 from 2021-22. These contributions include employers compulsory payments and personal deposits.
Exceed your cap and the excess gets added to your assessable income and taxed at your marginal rate of up to 47 per cent including the Medicare Levy, and extra interest charges may apply. ....

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