Concessional Contributions are the technical term for all contributions entering your superannuation from pre-tax dollars or for which you will claim a tax deduction.

As a higher income earner the maximum entitlement to employer contributions ceases at the level known as the maximum superannuation contribution base for the 2019/2020 financial year this base is $55,270 per quarter.

What does this mean:

If you earn more than $55,270 per three month period then your employer after that point no longer has an obligation to pay 9.5% of your additional salary into superannuation making their maximum legal obligation to contribute to superannuation $5,250.65 per quarter a potential total of $21,002.60 per annum.

The current 2019/2020 concessional contributions cap is $25,000 meaning that you could then make additional personal pre tax contributions of up to $3,997.40 per annum. If your income is below $250,000 this will have an additional taxation benefit of roughly 30% saving you $1,199.22 in tax. If you earn over $250,000 as at 2019/2020 then the tax rates change.

Income over $250,000 results in your superannuation tax rate changing from 15% to 30%, for some or all of your superannuation pre tax contributions depending on your net income inclusive of:

• taxable income (including the net amount on which family trust distribution tax has been paid)
• reportable fringe benefits
• total net investment loss (including net financial investment loss and net rental property loss)
• non-excessive Concessional Contributions.

We welcome you contact us today to discuss your contribution options and what further opportunities may be available to you in the ever changing legislative environment.