Undeducted Contributions (Now termed "Non Concessional Contributions")
Personal Contributions made into Superannuation on which no tax deduction is claimed are known as Undeducted Contributions (now termed "Non Concessional Contributions").
Eligibility to Make Undeducted Contributions (Now termed "Non Concessional Contributions")
If you are under Age 65 you can make Undeducted Contributions into Superannuation. You do not have to be working to make Undeducted Contributions into Super if you are under Age 65.
Maximum Undeducted Contribution (Now termed "Non Concessional Contributions")
If you are under Age 65, an annual limit of $150,000 per person applies for Undeducted Contributions made into super. However you will be able to bring forward up to two years of contributions and invest up to $450,000 in one year if you so choose. If you do this no further contributions will be allowed in years two and three. Note that contributions exceeding these contribution limits will be taxed at a penalty rate of 46.50%.
No Tax on Undeducted Contributions (Now termed "Non Concessional Contributions")
No tax is ever payable on Undeducted Contributions made into a SMSF either when the monies are contributed into the SMSF or when monies are accessed on retirement.
Investing Undeducted Superannuation Contributions (Now termed "Non Concessional Contributions")
Undeducted Superannuation Contributions are deposited into your SMSF Superfund Bank Account. The Undeducted Superannuation Contributions can be used for investment in the usual way including investing in shares (using Comsec), Warrants or Term Deposits. Under the recent Budget Better Super changes any withdrawal of Undeducted Superannuation Contributions when you retire or on your death will not be subject to taxation.
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