1 July, 2015
THE BUDGET REPAIR LEVY MAKES TOPPING UP SUPERANNUATION MORE ATTRACTIVE
The three year “temporary” repair levy kicks in for the 2014/15 year and will continue on for two financial year’s after that. The budget repair levy affects anyone on a taxable income over $180,000.00 making the effective marginal tax rate 49% (including Medicare).
This means that for the out of pocket expense of salary sacrificing could be as low as 51cents in the $1. The concessional superannuation caps for the 2015/16 year based on a person’s age are as follows:
* age 50 and over on 30 June 2015: $35,000 contribution cap
* age 49 and under on 30 June 2015: $30,000 contribution cap
Note that employer super guarantee contributions and salary sacrifice contributions are included in these caps. And don’t forget that salary sacrifice employer contributions must be an arrangement made in advance of receiving the income so NOW is a good time to get a plan in place for the 2015/16 year.
Liz Gibbs
SMSF Manager – OPTIMA PARTNERS
