What is the sole purpose of a Superannuation Fund?
It was previously mentioned that a complying superannuation fund is essentially a regulated superannuation fund that meets the operational standards of SISA. Complying superannuation funds are taxed concessionally (i.e. a complying fund is taxed at a rate of 15% while a non-complying superannuation fund is taxed at 47%). The object of the sole purpose test is to ensure that regulated superannuation funds are maintained for the purpose of providing benefits to fund members upon their retirement or their dependents, in the case of a member’s death.
It was previously mentioned that a complying superannuation fund is essentially a regulated superannuation fund that meets the operational standards of SISA. Complying superannuation funds are taxed concessionally (i.e. a complying fund is taxed at a rate of 15% while a non-complying superannuation fund is taxed at 46.5%). The object of the sole purpose test is to ensure that regulated superannuation funds are maintained for the purpose of providing benefits to fund members upon their retirement or their dependents, in the case of a member’s death. What are the current tax rates for resident individual taxpayers? The new tax rates commencing 1 July 2008 are as follows: Taxable Income Marginal Rate* Tax Payable $ Up to 6,000 Nil Nil 6,001 – 34,000 15% 15c for each $1 over 6,000 34,001 – 80,000 30% 4,200 plus 30c for each $1 over 34,000 80,001 – 180,000 40% 18,000 plus 40c for each $1 over 80,000 Excess over 180,000 45% 58,000 plus 45c for each $1 over 180,000 *Tax rates exclude Medicare
