Q: Are the caps relating to ‘concessional’ and ‘non-concessional’ contributions regarded as separate? Put simply, can I contribute $25,000 concessional and $450,000 non-concessional sums (a total contribution of $475,000) to my super fund for the 2012/2013 year?
A: ‘Yes’ is the answer to the first part of the question. The
‘Yes’ can also be the answer to the second part of the question (can I contribute $25,000 concessional and $450,000 non-concessional), assuming you are under the age of 65. I explain the two contributions caps elsewhere on the site (Super concessional contributions: 2012/2013 survival guide and Your 2012/2013 guide to non-concessional (after-tax) contributions), but briefly, assuming an individual is under the age of 65, he can make up to $450,000 in non-concessional (after-tax) contributions in one year, representing his annual $150,000 cap for three years. If you’re aged 65 years or over, the maximum amount of
Note: Any contributions in excess of this concessional (before-tax) cap are subject to excess
The concessional (before-tax) contributions cap is $25,000 for the 2012/2013 year and also for the 2013/2014 year. The $25,000 cap was supposed to be indexed in $5,000 increments in line with increases in Average Weekly Ordinary Times Earnings, but the Government has frozen the cap until at least July 2014.
The non-
The rules outlined above mean that an individual can make a total of $175,000 in
An individual can then potentially make $475,000 in super contributions in one year, subject to the specific contributions caps.
A couple could potentially contribute a combined $950,000 in one year (for the 2012/2013 year).
Prior to 1 July 2009, the income test that was applied to the Government's co-contribution scheme was identical to the income test applied in respect of tax deductible (member) contributions (namely, Assessable income from eligible employment plus reportable fringe benefits). From 1 July 2009, salary sacrificed super contributions count towards the co-contribution income test. Was there a similar change made in relation to the income test that applies to concessional contributions in the form of member tax deductible contributions. My understanding is that the income test applicable to tax deductible (member) contributions is that the member's assessable income plus reportable fringe benefits from eligible employment must be less than 10% of their total assessable income from all source. Is that still the case after 1 July 2009?
Hi Stephen – I’ve answered your question here.
http://www.superguide.com.au/boost-your-superannuation/tax-deductible-contributions-10-percent-income-test
Regards
Trish