Tax on contributions

Before tax contributions (as at 1 July 2012)

15% tax 46.5%* tax

Up to $25,000 pa Over $25,000 pa

An increase in the contributions tax rate for anyone earning in excess of $300,000 (including concessional contributions) from 15% to 30% was announced in the May 2012 Federal Budget effective for the 2012/13 financial year.

Further information will be published here when details are finalised on how the additional tax is to be applied.

After tax contributions: (as at 1 July 2012)

Age No tax 46.5%* tax

Age 64 and under Up to $150,000 pa OR $450,000 over 3 years Anything over these limits.

Age 65 to 74 Up to $150,000 pa Anything over these limits.* Note this amount will be indexed in future years. 46.5% is the top marginal tax rate plus Medicare Levy.

Your tax file number is important

If your fund does not have your tax file number a penalty tax could apply to your before tax contributions which is all employer contributions including salary sacrifice (accumulation funds only). In addition, your fund may not accept after tax contributions without a tax file number.