Salary Sacrifice Calculator Australia

More chaos over 'excess' super contributions

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More chaos over 'excess' super contributions

This is the problem just will not go away. The excess contributions continue to cause great pain, to those who save for their retirement and relief proposed by the government was compared to applying a Band-Aid to a problem that requires surgery.

Excess contributions Super occur when you receive concessional pre-tax contributions totaling more than $ 50,000 per year for those aged 50 or older, or $ 25 000 to less than 50 years.(There is a limit on non-concessional contributions or after-tax, and a proposal to reduce the limit by more than 50 years at $ 25,000 if they have more than $ 500,000 in super next year -. But keep it simple)

Preferred contributions include contributions that your employer is your funds, your own salary sacrifice contributions and personal deductible contributions all, if you are able to do. They also include amounts you may not know, such as fees paid by your employer to cover the cost of funds, such as insurance and administration.

Your concessional contributions are recognized in the year they are credited to your fund, not when you should have received. This means members of the fund is to thank you payroll services for employers.

If your employer makes contributions in arrears a year and they hit your fund after July 1, they are automatically included in contributions for the next year and could push you over the cap.

Even when employers do the right thing and pay on time, employees may have problems.Because when the deadlines, many employers have 27 semi-monthly pay cycles of the financial year 2010-11, rather than the usual 26. If you were calculating your salary sacrifice contributions based on your salary every two weeks - and passing close to your limit - you might have a looming problem of excess contributions.

As the stories of this tax disaster seemingly harmless filter, it seems super funds also generate excessive pain of contributions for members.

The head of retirement for the Canadian Institute of Chartered Accountants in Australia, Liz Westover, met with several cases in which the contributions were counted twice by the way they were reported.

The cases have mainly involved members of funds that can be self-employed deductible personal contributions to super as long as they receive less than 10 percent of their income from an employer.

When these members contribute to the fund, they also file a form indicating their intention to request a personal deduction so that the Fund knows that this is a favor, rather than non-concessional contribution.

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