At Hejaz Financial Services, our expert team comprises of Tax Financial Advisers, Tax Agents and Accountants. We can therefore advise and assist on matters relating to Tax Minimisation, Tax Strategy, and Investment Structuring. We have seen time and again, the difference in investment outcomes between those who structure their investments in a tax-smart manner and those who don’t.
Australia’s tax regime is as comprehensive and complicated as any in the world. There are frequent changes to legislation and regulations – but working with Hejaz Financial Services experienced tax advisors gives our clients the security that their tax affairs are in safe hands.
We consider the tax implications of any investment that we recommend to our clients. An investment is ‘tax-effective’ if you pay less tax than you would have paid on another investment with the same return and risk. While lower tax can help your savings grow faster, you should never base an investment decision on tax benefits alone.
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Employee taxpayers whose employer is required to contribute to superannuation are not eligible to claim a tax deduction. Instead, the government may make a co-contribution to their fund.
Contributions made through salary sacrifice or by another person on your behalf will not be counted for the purposes of calculating the co-contribution. If you are self-employed you may be able to claim a deduction for your contributions.
There is a limit to the amount of money you can voluntarily contribute into your super fund on a concessional basis. Superannuation contribution limits operate to limit the tax benefits available each year.
Making contributions over the limits results in additional tax payable, and excess concessional contributions are counted towards the non-concessional cap.
However, from 1 July 2013 excess concessional contributions can be withdrawn and taxed at the individual’s marginal rate plus interest. Legislation was passed in March 2015 to treat excess non-concessional contributions on a similar basis.
Concessional contributions are essentially those contributions which are tax deductible, and include employer contributions and personal contributions claimed by the self-employed.
From 1 July 2014 the concessional cap is $35,000 for anyone aged 49 years or more on 30 June 2014 and for anyone aged under 49 years on 30 June 2014 the cap is $30,000.
Non-concessional contributions are those made from after-tax income. There is no contributions tax applied when they are contributed to the super fund.Once in the fund, the normal fund tax rates apply to earnings
From 1 July 2014 there is a limit of $180,000 per year on non-concessional contributions which are post-tax amounts that have not been claimed as a tax deduction. This cap amount may be indexed annually.
If your superannuation contributions exceed the cap amount you will be taxed at the highest marginal rate plus Medicare on those excess contributions. There are transitional rules that apply to taxpayers who are nearing retirement.