Tax Savings Strategy 209 | Excess Concessional Super Contributions
The tax consequences of this are:
- The employer receives a tax deduction for the total super contributions made.
- The excess super contributions are included in the employees individual assessable income and taxed at marginal rates. The individual is entitled to a 15% ECC tax offset.
- The super fund is taxed 15% on the employer contributions.
The advantages of this strategy are:
- Enables high income earning employees to pump extra funds into their super fund.
- Tax savings result when the super fund has tax losses due to negative gearing. This can result in the fund paying no tax on the employer super contributions received so saving 15% tax.
Similar posts you may like
- Legal Reasons to Use a Tax Haven
Without doubt, the dominant legal reason to use tax havens is to save tax. Many taxpayers, especially multi-national corporations, can legally save tax by Read more
- Fraud Using Tax Havens
Many frauds involve using tax havens, as their confidentiality and secrecy aid fraudsters. In law, fraud is the deliberate deception to secure unfair or Read more
- Small business tax incentives for digital adoption
Small businesses can receive a bonus 20% deduction on eligible expenditure supporting digital adoption. Eligible expenditure includes: digital enabling items, such as hardware, software, systems Read more
- Vanuatu
Capital city: Port Vila Currency: Vanuatu Read more
"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
- Bono: U2