Contributions caps are subjected to additional tax in

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“contributions caps” are subjected to additional tax in  the form of: “Excess concessional contributions tax” at 31.5% “Excess non-concessional contributions tax” at  46.5%
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Foundations of Taxation Law Contributions caps Contributions caps Concessional contributions cap: Generally: $25,000 For persons aged 50 or over on the last day of the  financial year: $50,000 Non-concessional contributions cap: Six times the concessional contributions cap:  $150,000 Subject to a three year “bring-forward” concession:  $450,000 © CCH Australia Limited [¶24.9](b)
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Foundations of Taxation Law [¶24.10](a) © CCH Australia Limited Taxation of superannuation entities Taxation of superannuation entities Special taxation rules in Div 295 ITAA97 apply to  superannuation entities Trustees of superannuation funds, ADFs and PSTs  taxed on taxable income of such entities Taxable income of complying superannuation entities  is divided into: “low tax component” (taxed at 15%) “non-arm’s length component” (taxed at 45%) No TFN-contributions income (taxed at 31.5%) Non-complying superannuation entities (taxed at  45%) 
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Foundations of Taxation Law Taxation of superannuation entities  Taxation of superannuation entities  (cont) (cont) Superannuation entities are generally taxed under  CGT rather than the general tax rules (making them  eligible for 1/3 discount on gains made on assets held  for at least 12 months) Income derived from assets used to fund current  pension liabilities is exempt Superannuation funds assessed on “assessable  contributions”, which include: Employer contributions Deductible personal contributions © CCH Australia Limited [¶24.10](b)
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Foundations of Taxation Law [¶24.11](a) © CCH Australia Limited Taxation of superannuation  Taxation of superannuation  benefits benefits A superannuation benefit may comprise: Tax-free component: Contributions segment Crystallised segment Taxable component: Element taxed in the fund Element untaxed in the fund Taxation rules distinguish between: Lump sum benefits Income stream benefits
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Foundations of Taxation Law [¶24.11](b) Superannuation benefits paid to members from a  complying superannuation plan are taxed in  accordance with rules in Div 301 ITAA97 Superannuation benefits paid to a person as a result  of the death of another person are taxed in  accordance with rules in Div 302 ITAA97  Capital gains and capital losses relating to benefits  received from superannuation funds are disregarded Taxation of superannuation  Taxation of superannuation  benefits (cont) benefits (cont) © CCH Australia Limited
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Foundations of Taxation Law [¶24.11](c) Tax-free component is exempt
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