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Superannuation Rates and Thresholds The Tax Office recently released an updated guide providing the key rates and thresholds in relation to superannuation contributions and benefits that apply from 1 July 2007. Some of the thresholds rates are included below: · The concessional superannuation contributions cap for the 2007/08 year will be $50,000 (these include contributions made under a salary sacrifice arrangement). · Between 1 July 2007 and 30 June 2012 a transitional concessions cap will apply to persons aged 50 and over. For persons aged 50 or over, the annual cap will be $100,000. · The employment termination payment (ETP) cap for concessional tax treatment for the 2007/08 income year will be $140,000. Any amount paid in excess of this ETP cap amount will be taxed at the top marginal rate. Tip: Superannuation is a key tax and retirement planning opportunity, and taxpayers should consider opportunities based on the thresholds. |
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Other Key Issues · The amnesty for lodging Family Trust Elections and Interposed Entity Elections for the 2004 and earlier income years expired on 31 May 2007. All requests received after this date will be assessed on a case by case basis. · The Capital Gains Tax improvement threshold for the 2007/08 income year is $116,337 which is an increase of $3,825 from the previous year. An improvement to an existing pre-CGT asset is considered to be a separate CGT asset where the value of the improvement exceeds this threshold amount. · The Tax Office has recently released a fact sheet relating to the application and calculation of the shortfall interest charge (SIC). Generally, where the Tax Office identifies a tax shortfall, SIC will apply from the date of issue of the notice of assessment. In some circumstances, the SIC may be remitted on written application to the Tax Office. |
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Important: This is not advice. Clients should not act solely on the basis of the material contained in this Bulletin. Items herein are general comments only and do not constitute or convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. The Bulletin is issued as a helpful guide to clients and for their private information. Therefore it should be regarded as confidential and not be made available to any person without our prior approval |
