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Tax and super tips for teachers

Tax and super tips for teachers

Tax and super tips for teachers

by Steve Perrica

There are new super rules that commenced on 1 July 2017.

The good

Anyone who is eligible to make voluntary super contributions will also be eligible to make personal concessional (tax-deductible) contributions. Currently, people earning more than 10% of their income as an employee (i.e. salary and wages) cannot make a tax-deductible super contribution, so this recent change should provide greater flexibility with:

  • end of year super top-ups by making personal concessional contributions to use up any remaining concessional contribution cap;
  • deciding how to contribute bonuses, annual leave and long service leave; or
  • tax-effectively contributing lump sum leave payments received upon termination of employment.

 

The bad

New Concessional Contribution Cap of $25 000 for everyone. This may create problems for:

  • Anyone contributing to a superfund separate to their Employer fund
  • Anyone in a defined benefit fund packaging Life Cover Super Premiums
  • Anyone in a constitutionally protected fund and packaging Life Cover Super Premiums

 

The ugly

Excess concessional contributions will be taxed at 49% – 15% = 34%.

 
Download and save the below infographic for handy tips on deductions for teachers.

tax_tips_infographic-ric publications Australian teacher tax

 

Please note: This is general advise only and does not substitute advise from a certified accountant.
Check out the ATO website for Teachers and education professionals - income and work-related expenses here. 

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