Here’s a great way to understand how you are taxed on your SMSF. Your SMSF contributions, whether it is concessional or non-concessional has a dollar cap applied annually.
Your contribution cap is also covered by Indexation starting July 2014. This is an adjustment on your contributions based on your weekly income. Understanding this will avoid any excess in your SMSF contributions.
Making sure that your contributions are just about right will avoid benefits from being neutralized, and the member is liable in paying an excess concessional contribution charge. For non-concessional contributions, the tax rate is at 46.5%.
Knowing where you stand with your SMSF contributions will help avoid any complications in the future and allow you to focus more on enjoying your hard earned money.
Read more about this on the SMSF Essentials website.
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