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new super plan

Discussion in 'Superannuation, SMSF & Personal Insurance' started by chris_qld, 23rd May, 2009.

  1. chris_qld

    chris_qld Active Member

    Joined:
    21st Jan, 2008
    Posts:
    44
    Location:
    brisbane
    I was reading an article regarding superannuation plan in the Courier Mail. The author says: "If you are a high-income earner...check with your employer to see just how much super you are due to receive. If you are pushed beyond the $25,000 cut off for under 50s, renegotiate to receive the money in another form."

    Could anyone tell me what's "another form" of the money?

    Thanks.

    Chris
     
  2. AsxBroker

    AsxBroker Well-Known Member

    Joined:
    8th Sep, 2007
    Posts:
    1,448
    Location:
    Sydney, NSW
    Hi Chris,

    I couldn't get to the article as the hyperlink wasn't working.

    Employers should be paying 9% super...If your salary package stipulates that your employer makes contributions into superannuation of more than $25,000 those contributions above the limit will be taxed at the top marginal tax rate. The proposed new limits are $25,000 if you are under 50 and $50,000 if you are over 50 until 30th June 2012.

    I think it's good to forewarn people but realistically I don't know how many people are going to be over their limits (maybe 5% of the population or less?)

    Other forms of "money" are talking about "packaging" your salary, eg, get paid cash, car, mobile phone, rental, loans, etc. The limit is your imagination and your employer.

    Cheers,

    Dan

    PS Before making a superannuation decision speak to your FPA registered Financial Planner.
     
  3. SMSFMAN

    SMSFMAN SMSF Specialist Advisor™

    Joined:
    11th May, 2009
    Posts:
    8
    Location:
    Castle Hill, NSW
    The $25,000 limit will apply from next financial year so you can still receive $50,000 in contributions this year. It would be a good idea if anyone has salary sacrifice arrangements in place to review then on or before the 1/07/2009 to ensure that when combined with Employer contributions including payment of insurances through super etc that they don't exceed the cap or you will be taxed up to an extra 31.5%