MartinH

Can anyone help me with a straighforward (with the emphasis on straightforward!) reference guide to the rules regarding tax relief available on pension contributions in Australia?

I will be 43 on arrival and (effectively) self-employed. Given my lack of any substantial pension provision at the moment () I will be wanting to make fairly substantial contributions for my remaining working years.

mkp

Hi MartinH
If you really want optimise your situation for Australia, you should consider your funding options in the UK, with a view to then transferring your UK benefits to Australia. This way you can enjoy tax efficiency in both countries. I think you should take advice from someone in the UK asap who really knows their stuff on this topic - you could be substantially better off.
Good luck
mkp

Geelong Gent

I take it you mean you have limited contributions in the UK as well?

In Australia there is a 9% compulsory contribution by employers. Some employers contribute more ie 12 or 14%.

The rules have changed recently but I believe they were related to the limits in which you can contribute yourself. You can salary sacrifice contributions - this entails having the deduction taken out of your gross pay (therefore you pay tax on the remaining gross balance). However I think you get charged a nominal rate of 15% for this (benefit because the gross pay would of otherwise been taxed at 30 40 or 45%).

You should spend some time selecting the right super fund because they have alot of additional perks ie you can use them to pay for your critical illness and life insurance. Sort of salary sacrifice for these costs in a long winded way.

My advice would be to research as much as possible yourself through the www.ato.gov.au website for the tax issues - You would be surprised how much you pick up yourself.

The law was also changed specifically on self employed contributions allowing them to be deductible expenses or something like that.

Maybe Alan if he sees this thread may correct me or add further info.