ALL >> Investing---Finance >> View Article
Too Much Super

As the end of financial year approaches, superannuation issues are some of the most important considerations that tax payers should be aware of. One such issue is the danger of super contributions exceeding the contributions cap. If the contributions exceed the cap, then it is possible to pay almost 93 per cent tax on a super contribution in penalty for the breach.
To avoid being penalised, keep in mind that there are only a limited number of contributions that can be elected not to count towards the non-concessional contributions cap. These include contributions arising from personal injury payments and the proceeds from certain small business assets. There are a number of circumstances that should raise alarm bells:
Keep track of when an employer makes a superannuation guarantee payment. If they make it in July instead of June, this could force up the contribution.
The same applies to contributions which are made before June, but aren’t processed until July or later. This can increase a contribution unbeknownst to the taxpayer.
If a taxpayer has multiple jobs, then it is possible that the superannuation ...
... guarantees by each employer can push them over the edge and make them qualify for the excess contributions tax.
The limit for concessional tax deductible contributions is very low, and so many people are being pushed inadvertently over the limit. Make sure to consult a professional and find out whether circumstances warrant asking the Commissioner to reconsider the excess contribution assessment.
This article is for guidance only, and professional advice should be obtained before acting on any advice herein. Neither the publisher Leenane Templeton The Self Managed Super Specialists nor the distributors can accept any responsibility for loss occasioned to any person as a result of action taken or refrained from in consequence of the contents of this publication. See "Self managed super funds" website for further information. This article relates to Australia, NSW and does not take into account any legislative or other changes made after 1 April 2011.Visit the SMSFs website for more information.
Add Comment
Investing / Finance Articles
1. How To Protect Your Crypto Wallet: Essential Tips Beyond PasswordsAuthor: Eldon Ryder
2. Ipo Grey Market Premium (gmp) Guide | Live & Upcoming Ipo Gmp Trends
Author: finowings
3. Top Benefits Of Enrolling In A Certificate Course In Banking
Author: sandeep
4. Crizac Ipo Gmp 2025: Key Dates, Price Band & Gmp Update
Author: finowings
5. Stock Market Advisory: The Growing Importance Of Professional Stock Advisory Services
Author: Vinay
6. What Is Sip And How Does It Help Build Wealth?
Author: Sagar Shah
7. Choosing The Right Accounting Firm In East And South Auckland: What You Need To Know
Author: WhizBiz
8. Goldco Review: Best Ira Guide For Investors, Retirement Planners, & Retirees
Author: Gold and Silver Investment News
9. Navigating Financial Growth With Avendus
Author: Drishti Desai
10. The 4 Types Of Income You Need For True Financial Freedom
Author: Wealth Samurai
11. Why Hyderabad Millennials Are Choosing Personal Loans Over Credit Cards
Author: anilsinhaanni
12. How A Retail Lending Specialist Can Help You Secure The Best Loan Deals
Author: sandeep
13. How Knee Replacement Improves Quality Of Life For Arthritis Patients
Author: uttam
14. Stock Market Advisory: Unlocking Investment Success With Share Market Advisory Services
Author: Vinay
15. The Rise Of Investment Banking Companies In Hyderabad’s Financial Scene
Author: Verity knowladge solutions