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Category » Tax

There were 6 articles found in this category:

• Q1 What is my marginal tax rate?

  The term marginal tax rate is sometimes used to describe what tax bracket you are in. The rates below apply to individuals who are residents of Australia for tax purposes: Tax Rates 2011-2012 Taxable income Tax on this income $1 – $6,000 Nil $6,001 – $37,000 15c for each $1 over ... Read more

• Q2 What are the tax limits on super contributions?

  Super is a tax effective way to save for retirement. Consider your options. Some quick tax facts* Contributions made to super out of after-tax income are capped at $150,000 a year. For people under age 65, the cap is $450,000 over a three-year period if more than $150,000 is contributed in the ... Read more

• Q3 Why do I pay contributions tax?

  You will be liable for contributions tax if you, your employer, or another party make concessional contributions to your superannuation account. In these instances, contributions tax of 15% will be levied on your account. The 15% contributions tax is lower than most individual’s margin ta ... Read more

• Q4 Do I have to pay tax on my superannuation benefits once I reach preservation age?

  The current preservation age is 55 (for those born before 01/07/1960) and moving to age 60 (for those born after 01/07/1964). Your superannuation benefits will most likely contain a tax-free and taxable component (your superannuation fund can provide you with a break-up of your super benefits). ... Read more

• Q5 What is contribution tax?

  A 15% contributions tax applies on employer contributions (including salary sacrifice contributions) and is deducted from members’ accounts. Personal after-tax contributions and Government Co-contributions are not subject to contributions tax. Self-employed members may claim a tax deductio ... Read more

• Q6 If I’m no longer paying tax, do I still have to lodge a tax return?

  If you are no longer paying incoming tax there may still be other reasons why you are required to lodge a tax return. These can be found on the ATO website. If you do not need to lodge a tax return you should inform the ATO via their non-lodgement advice form (or they will accept a signed letter ... Read more