Superannuation in Australia is taxed by the Australian taxation system at three points: Superannuation contributions are either concessional or non-concessional contributions. Concessional contributions are taxed in the fund. While taxable components do not change the tax payable by the superannuation fund, they may be a factor in calculating the tax payable on withdrawals from a super fund.
Non-concessional contributions also Consolidating superannuation australia wikipedia to as "undeducted" or "after-tax" contributions are contributions for which no-one has or will receive a tax deduction. Non-concessional contributions are, generally, not taxed in the fund.
Contributions to superannuation funds are subject to two types of "caps", and a third has been proposed in the federal budget. Non-concessional contributions under the "non-concessional contributions cap" are not taxed in the fund.
Members who have a balance in a retirement phase account in excess of this limit will have until 30 June to either return the excess funds into "Consolidating superannuation australia wikipedia" phase or take the money out of superannuation. The investment income of superannuation funds derived from those assets backing pensions i.
Expenses of the superannuation fund, such as administration expenses, investment management expenses and insurance premiums, are allowable deductions against the fund income.
Life insurance premiums paid by the fund are also deductible by the fund from assessable income; while the same premium if paid directly by the individual member may not be tax deductible. Where an investment "Consolidating superannuation australia wikipedia" other asset is sold or otherwise disposed, the profit on sale is subject to a capital gains tax.
Superannuation funds can claim a capital gains tax discount where the asset has been owned for at least 12 months. No discount or adjustment is available if an asset is sold at a loss. Capital losses can only be applied against capital gains and cannot be claimed against other income, but may be carried forward to the next year and applied against the later year's capital gains.
The taxable income of a superannuation fund is the fund's assessable income less allowable deductions. Assessable income includes concessional i.
It does not include exempt income and undeducted contributions. Undeducted contributions are those which the employer or the member cannot or has chosen not to claim as a deduction from their respective assessable income.
In reality, the actual average tax rate can be lower than this, typically around 6. If the taxable income includes dividend income, any imputation credits attached to those dividends form part of the fund income, either assessable or exempt. In either case, the fund is entitled to a tax credit for the imputation credits as if they are a credit for tax paid by the fund.
Consolidating superannuation australia wikipedia
If the credits exceed the fund's tax liability, the excess is refundable. Other factors that could affect the tax liability of benefits include the level of undeducted contributions made and other components such as transfers of amounts from the sale of a small business.
Generally for a lump sum superannuation payout called an "eligible termination benefit":. Special arrangements applied for benefits which exceeded the Consolidating superannuation australia wikipedia benefit limits.
These rules ceased on 1 July Since 1 Julyno taxes are payable on benefits paid to members over age 60, one of the measures arising from the federal budget.
From Wikipedia, the free encyclopedia. Taxation An aspect of fiscal policy Policies.
Desai Dhammika Dharmapala James R. Capital gains tax in Australia.
This section's factual accuracy may be compromised due to out-of-date information. Please update this Consolidating superannuation australia wikipedia to reflect recent events or newly available information. Archived from the original on Retrieved 6 April Retrieved from " https: Taxation in Australia Superannuation in Australia.
All articles with dead external links Articles with dead external links from June Articles with permanently dead external links Webarchive template wayback links Articles with obsolete information from November All Wikipedia articles in
Consolidating superannuation australia wikipedia of updating.
Research Academic Mihir A. Joel Slemrod Gabriel Zucman.
Australia's superannuation system is not the paragon it's cracked up to be. http ://kapiolaniparkonline.com(economist) .