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Concessional (before-tax) contributions

Concessional is a term used to describe favourable tax treatment. For example, earnings in superannuation funds receive concessional tax treatment. The term 'concessional contributions' means that such contributions receive special tax treatment.

Concessional contributions are before-tax contributions that can include employer contributions, contributions made under a salary sacrifice arrangement and tax-deductible contributions by an individual.

Set out below are all SuperGuide articles explaining Concessional (before-tax) contributions.

Super health check for beginners: 10 tips for your 2016/2017 retirement planning

Note: This article is current for the 2016/2017 financial year.Near the start of each financial year, SuperGuide publishes an updated super checklist for beginner readers. More advanced checklists will follow in coming months. Use this list as a kick-start for your 2016/2017 super resolutions. … [Read more...]

The short story on super contributions limits (2016/2017 year)

You can make two types of superannuation contributions – concessional (before-tax) contributions and non-concessional (after-tax) contributions – and each type of contribution has a separate limit. Concessional contributions Before-tax contributions, such as compulsory Superannuation Guarantee … [Read more...]

Super contributions caps for the 2016/2017 year

The superannuation contributions caps for concessional (before tax) and non-concessional (after tax) contributions have not increased for the 2016/2017 year. The contributions caps applicable for the 2016/2017 year, are the same limits that were in place for the 2015/2016 year. Continue reading to … [Read more...]

Making super contributions: Aged 65 years or older

Q: From reading SuperGuide articles, I can see that for people between 50 and 74 years, the concessional contribution cap is $35,000 a year, and that for non-concessional contribution, the cap is $180,000. Is this $180,000 cap for NON-concessional contribution the same regardless of the age of the … [Read more...]

Temporary concessional contributions cap for over-50s, ends 30 June 2017

In July 2013, the federal government introduced a temporary concessional contributions cap of $35,000 for over-60s, which was then expanded to 50-somethings from July 2014. The over-50s cap of $35,000 will no longer apply beyond the 2016/2017 year (subject to legislation).A concessional … [Read more...]

Super contributions beyond the age of 75

Q: If employers must now make Superannuation Guarantee contributions for over-70s, does this mean that additional concessional or non-concessional contributions can also be made by those aged over 75?A: The short answer is ‘no’. Although employers are now required to make SG contributions for … [Read more...]

Over-65s work test: How does it operate again?

Does 40 hours in any 30-day period include weekends or is it 6 x 5-day weeks? I read in a bank’s booklet on superannuation that it must be “at least 40 hours in a period of not more than 30 consecutive days during the financial year ….”. This seems to imply working beyond 30 days is not permitted. … [Read more...]

Superannuation contributions: Wearing two caps for 2016/2017 year

Q: Are the caps relating to ‘concessional’ and ‘non-concessional’ contributions regarded as separate? Put simply, can I contribute $30,000 concessional and $540,000 non-concessional sums (a total contribution of $570,000) to my super fund for the 2016/2017 year?A: The contributions caps are … [Read more...]

Higher concessional contributions cap applies to over-50s

Q: Do you need to be aged 50 at July 1, 2016, or could you turn 50 any time in the 2016/2017 year to take advantage of the $35,000 concessional cap?A: For the benefit of other readers, we will first explain the background to the over-50s cap.On 5 April 2013, the federal government announced … [Read more...]

Concessional contributions caps to be slashed from July 2017

On 3 May 2016, as part of the 2016 Federal Budget, the Coalition government announced it intends to scrap the over-50s concessional (before-tax) contributions cap of $35,000 and replace it with a $25,000 cap, and reduce the general concessional contributions cap (for under-50s) to $25,000, from its … [Read more...]

Super for Beginners (25 Q&As)

One of SuperGuide’s more popular initiatives has been the development of a ‘Super for Beginners’ section that answers some of the many questions that we receive from those readers who are new to superannuation and new to super’s terminology.The series currently consists of several lead articles, … [Read more...]

Super for beginners, part 25: Is super worthwhile if I’m earning less than $37,000?

Q: Great site! Lots of excellent information. I now work part-time, earning just under $37,000, and wondered whether I should bother with super. I am pretty sure I will get the Age Pension, and based on my income I reckon I would be better to save outside super and pay less tax, rather than have my … [Read more...]