Changes to the Superannuation Guarantee Contributions Levy – What Does It Mean For You!
As from 1 July 2021 the rate has been increased to 10% of gross income; the cap has also been increased to $27,500 per year as a result of indexation.
If you make additional contributions to your superannuation by way of:
- salary sacrifice
- personal contributions or
- under an industrial award
it may be wise to do a review to avoid exceeding the cap.
Excess contributions above the cap will result in Division 293 tax provisions being applied where the amount of excess contributions is included in your assessable income and taxed at your marginal rate. Also, an excess contributions charge will be payable.
Please do not hesitate to contact us if you have any questions or want more information.
