We here at Gotsis Rubic & Barbariol can assist you with all of you Superannuation accounting and tax matters, as we have helped many of our clients. To begin with, below is a summary of key information on superannuation concessional, non-concessional and other superannuation related matters which will assist you.

Concessional Contributions

• Amounts paid into superannuation by your employer to meet the Superannuation Guarantee obligations and amounts paid under a salary sacrifice arrangement are called concessional contributions.
• For those under 50 years of age, the Concessional Cap (CC) for superannuation contributions introduced under the Better Super regime means that you can contribute up to $25,000 per year into super and only pay 15% tax. This figure increases to $50,000 if you are over 50. The transitional concessional cap of $50,000 will apply for the 2009-10,2010-11 and 2011-12 years of income. This allows you to build up your wealth quicker rather than paying a tax rate of 46.5%.
• Excess concessional contributions also count towards an individual’s non-concessional contributions cap.
• If your income is under $30,342 and you contribute $1,000 post tax into your super fund the government will match it with a further $1,500.

From 1 July 2009, contributions made to a superannuation fund under salary sacrifice will be included in the reportable fringe benefit amount shown on your payment summary. Superannuation contributions for which a tax deduction has been claimed will also be included.  Therefore, if you have any benefits from Centrelink or the Family Assistance Office that are subject to an income test or Child Support payments used to determine your liability to such things as the Medicare Levy Surcharge or repayments of HECS-HELP debts, these contributions will be taken into account.

Non-Concessional Contributions

• Non-concessional contributions are post-tax amounts that you have not claimed a tax deduction for.  If you contribute more than the cap amount you will be taxed at the highest marginal rate plus Medicare (46.5%) on those excess contributions.  There are transitional rules that apply to taxpayers who are nearing retirement.
• The Non-concessional Contributions Cap (NCC) will remain at $150,000, which will be six times the amount of the concessional cap for 2009-10, or $450,000 under the ‘bring forward option’ over 3 years.

Tax Return Claims for Contributions to Superannuation Funds and The Government Co-Contribution Scheme
You are not eligible to claim a tax deduction if you are an employee taxpayer and your employer is required to contribute to superannuation. However, the government may make a co-contribution to their fund. If you are self employed you may be able to claim a deduction for your contributions.

The government will contribute a maximum of $1 for each $1 that you contribute to superannuation with a cap of $1000 per year. To be eligible for the co-contribution your assessable income (including reportable fringe benefits) should be no more than $60,342 for the 2009 income year.  You must also be less than 71 years of age at the end of the income year. Contributions made through salary sacrifice or by another person on your behalf will not be counted for the purposes of calculating the co-contribution.

The Government Co-contribution Scheme (GCS) will be reduced to a rate of 100% for contributed amounts for the 2009-10, 2010-11 and 2011-12 years, increasing to 125% for the 2012-13 and 2013-14 years and returning to 150% for the 2014-15 year. Therefore, the superannuation co-contribution rates from 1 July 2009 are:

• 100% for 2009-10, 2010-11 and 2011-12, with a maximum co-contribution of $1000, reduced by 3.333 cents for each dollar by which the person’s total income exceeds the shade out threshold for receiving the full co-contribution
• 125% for 2012-13 and 2013-14, with a maximum co-contribution of $1,250, reduced by 4.167 cents for each dollar of total income above the shade out threshold, and
• 150% from 2014-15 onwards, with a maximum co-contribution of $1,500, reduced by 5 cents for each dollar of total income above the shade out threshold.

Lost Superannuation Amounts
For lost superannuation amounts, superannuation providers will be required to transfer lost accounts with balances less than $200, or which have been inactive for five years and for which there are insufficient records to identify the owner of the account, to unclaimed monies. This measure will apply from the 2010-11 income year. Also, superannuation providers obligations under the unclaimed money regime will be matched with the requirements of the temporary resident unclaimed superannuation regime. The amended regime will apply to payments of unclaimed money due after 1 July 2009.

Retirement Income Report
The Australia’s Future Tax System Review Panel has released its report into retirement incomes. The review supports the current three-pillared system with some minor amendments. The major recommendations of the review include:

• increasing the age pension age to 67 years
• maintaining the current superannuation guarantee threshold of 9%
• aligning the superannuation preservation age with the age pension age, and
• undertaking further examination into the concessional tax treatment for superannuation contributions and for salary sacrifice arrangements.

The final version of the panel’s report will be released in December 2009.

Tax Implications on Your Superannuation Pension
If you are over 60 and retired you do not need to pay tax on your superannuation pension from a taxed fund. Most funds are taxed funds which is one where contributions tax was paid on the contributions made by your employer or under salary sacrifice into your super fund. If you have an untaxed super fund, you will have to pay tax on your superannuation income stream, irrespective of their age.

Self Employed and Superannuation
If you are self employed and have paid personal superannuation contributions all year you can claim a deduction on contributions that you have made to a compliant superannuation fund or retirement savings account. You must have informed your superannuation of your intention to do this and received confirmation. You must also be fully self-employed or have no more than 10% if your assessable income from an employer.

You may be eligible to claim the superannuation co-contribution from the government if more than 10% of your total assessable income is from running your own business, eligible employment or a from both. However, investment income is not considered eligible income. If any part of your superannuation contributions are claimed as a tax deduction, you are not eligible for the government superannuation co-contribution.