Changes to new contribution rules mean diligence

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In 2007, the government made superannuation withdrawals after age 60 free from tax (what a great benefit that has been to all self-funded retirees). However, it also limited the amount of contributions that could be made into a super fund.

Briefly, the types of contributions and the rules that applied to contributions made pre 30 June 2013 were:

i) Concessional contributions

These are contributions made by an employer including super guarantee contributions and salary sacrifice contributions, where the employee diverts their salary from the PAYG tax net into superannuation. It also includes contributions made by self-employed persons, business owners using a family trust who are not employed but rely on trust distributions for income, and retirees who are able to contribute and seek to claim a tax deduction on their contributions.

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