Avoiding An Excess Contributions Tax

Date: 06/10/2010

Failure to understand the contribution rules for superannuation funds can lead to excess contributions and tax penalties.

Superannuation contributions are capped each year, advises Louise Biti of Strategy Steps. Exceeding those caps can lead to trouble, she says. Louise Biti says remedial action to fix an excess contribution is very limited, making it even more important to fully understand the rules and get them right first. She spells out the caps with timely advice for practitioners and superannuation fund trustees.