Tax on concessional contributions up to the cap

Tax on concessional contributions up to the cap

If you have provided ESSSuper with your TFN, concessional contributions up to the cap are taxed at 15%. This tax is deducted from your account at 30 June each year and upon closure of your account. If you earn more than $250,000 of assessable income per year (including superannuation contributions) an additional 15% tax will apply to your concessional contributions relating to the income exceeding $250,000.

An amount of up to $500 will generally be paid by the ATO to eligible people earning less than $37,000 per year. This effectively compensates the member for the contributions tax they would have paid.

If you have not provided your TFN, concessional contributions are taxed at the top marginal rate of 47% including Medicare levy. This additional tax is imposed on ESSSuper and we recover it from your account. However, if you provide your TFN to ESSSuper within three years from the beginning of the financial year after this additional tax was deducted, and you are still a member of the Accumulation Plan, ESSSuper can apply to have this tax refunded by the ATO and allocated to your account.