PJT Accountants

ATO Targets Salary Sacrifice Superannuation Contributions

Tax payers who are likely to breach the new limits on salary-sacrificed superannuation contributions are being targeted by the Australian Tax Office. The changes, which took effect from 1 July 2009, affect the amount of savings that people can contribute into superannuation funds on top of compulsory payments from an employer.

Those aged under 50 can only contribute $25,000 at the 15% tax rate, a decline from $50,000 before 1 July 2009. People aged over 50 are limited to contributing just $50,000 for the 2009-10, 2010-11 and 2011-12 financial years, half the limit allowed before the 1 July 2009 changes.

It is important to remember that contribution caps apply and contributions that exceed these caps will be taxed at a higher rate.

Taxpayers need to get some advice regarding these regulations and revisit the viability of heir own salary sacrificing efforts, in terms of how much they are putting in. The consequences of breaching these limits are quite far ranging, and your super fund can be taxed at quite a higher rate than usual.

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