From the 1st of July 2012 if you are under 65 and you pay more than $25,000 into your superannuation before tax or pay more than $150,000 into your super after tax, then the amounts over the limit will be taxed at 46.5%, paid on your behalf by the super fund.

What payments to your super fund are included as the before tax $25,000 amount?

  • salary sacrificed payments,
  • additional pre-tax contributions made by your employer,
  • if you are self employed, payments that are allowed as tax deduction,
  • and the compulsory 9% superannuation paid by your employer.(earnings over $277,777 will exceed the limit)

and what payments are included in the $150,000 after tax amount?

  • non tax deductible payments made by your employer to you super fund, eg voluntary payments and super co-contribution,
  • contributions made by your spouse that is eligible for the spouse super contribution tax offset,
  • personal contributions that are not claimed as a tax deduction,
  • contributions in excess of your concessional (before-tax) contributions cap,
  • contributions in excess of your capital gains tax (CGT) cap amount,
  • most transfers from foreign super funds, excluding amounts included in your fund’s assessable income.

The super fund will look at the money received in any given financial year, so super levied on your income from April to June will be paid in the following financial year by the 28th July, and also last minute payments at the end of June may not show until the start of July in your fund.

So if the thresholds are exceeded then the super fund is obliged to forward to appropriate tax on the amounts over the threshold. As before tax contributions are already taxed at 15%, a balancing payment of 31.5% will be made on the excess.

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