If you earn more than $250,000 a year
High income earners currently pay an extra 15% tax on any concessional contributions that push their income over $300,000. From 1 July 2017 this threshold will fall to $250,000.
What it means to you
If you’re a high income earner you’ll pay more tax. Let’s say you have an income of $240,000 and make concessional contributions of $25,000 (a total income of $265,000). You’ll pay an additional 15% tax (30% in total) on contributions of $15,000, which is the amount of your contribution above $250,000.
You could also fnd yourself in this situation if you’re not on such a high salary, but you receive a lump sum that puts your total income for the year over $250,000. This could happen for example if you receive a redundancy payout, or sell an investment property.