Superannuation Tax Rules
Model Answers
Question 1 — Employer SG
$120,000 × 12% = $14,400, before considering the maximum contribution base, timing and any earnings definition adjustments.
Question 2 — Concessional contribution
A deductible personal contribution is generally concessional: it can be deductible to the member subject to the statutory rules and included in the fund’s assessable income. A non-concessional contribution is made from after-tax money without the same deduction and is subject to a separate cap. The fund/member consequences therefore differ.
Question 3 — Contribution cap
Caps and related thresholds can change through indexation or legislation. Advice using the wrong year can misclassify an excess contribution and materially alter tax consequences. The contribution date and income year are therefore foundational facts.
Question 4 — Division 293
Division 293 reduces the concessional tax advantage available to higher-income individuals by imposing additional tax on specified concessional contributions where the statutory income threshold is exceeded. Calculate the member’s Division 293 income and relevant contributions rather than applying the threshold to salary alone.
Question 5 — Fund earnings
A complying super fund is a separate taxpayer governed by Division 295 and a concessional fund-tax regime. The member is not treated as directly deriving each item of fund investment income annually. Fund phase, income type and exemptions can alter the effective outcome.
Question 6 — Benefit
Identify the member’s age, preservation/condition-of-release status, whether the payment is lump sum or income stream, the taxed/untaxed source, the tax-free/taxable components and the fund type. These facts determine the applicable benefit provisions.