Contributions caps

Every year, you are entitled to make super contributions. If you exceed a certain amount of contributions each year however, known as the contributions cap, any contributions above that cap will be hit with penalty tax.

You have two caps – a concessional contributions cap, and a non-concessional contributions cap.

Set out below are all SuperGuide articles explaining Contributions caps.

Non-concessional contributions: Tread carefully when aged 63 or 64 or 65 (3 Q & As)

Q: I am 64 and want to take advantage of the bring-forward rules when making non-concessional contributions. I turn 65 sometime during the 2015/2016 financial year. There is a possibility that I will be able to dispose of a property during the financial years 2015/2016 or 2016/2017. My three related … [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...]

Non-cash contributions, CGT and contributions caps

Q: My husband and I, both near 50, plan to spend around $700,000 of our cash to buy shares soon. We don’t have a trust structure or company (both PAYG) and wondered how/if we could buy them in the name of our self-managed super fund? How do we get the cash from our names to the super fund? I’ve read … [Read more...]

Capital gains: Reducing tax via super contributions

Q: I have a self-managed super fund (SMSF) and I also have two investment properties in my personal name. When I sell the properties, I will be required to pay capital gains tax. Can this capital gains tax be offset by a contribution to the SMSF which would be tax-deductible? Would there be a 15% … [Read more...]

Super for beginners, Part 1: I’m new to Australia – help me!

Q: I’m new to Australia and I have no idea where to start with my super in order to have the best outcome 40 years from now. So far, I have had my super spread between 3 industry super funds, as organised by temp employment agencies. I know this is not the way to continue, but I am not sure who to … [Read more...]

Nightmare on super street: Excess contributions

If you plan to make superannuation contributions to a super fund, you need to be mindful of the contributions caps for both concessional (before-tax) contributions and for non-concessional contributions, and the financial (or other) consequences of exceeding those contributions caps.Note: In the … [Read more...]

Super for beginners: Top 10 must-know facts

Nearly seven years ago, in January 2009, we launched the SuperGuide website, and in March 2009 we published the first monthly SuperGuide newsletter. Since that time we have received thousands of questions, from our millions of visitors, on different aspects of superannuation. We try to represent as … [Read more...]

Salary sacrificing and super: 10 facts you should know

Salary sacrificing superannuation, by making before-tax super contributions, is a popular strategy for employees on middle-to-high incomes. The deal is that you increase your superannuation balance (and pay 15% contributions tax, and for those earning an adjusted taxable income of more than … [Read more...]

Concessional contributions caps: 10 facts you should know

We receive many questions about the concessional contributions caps. Throughout 2015 and into 2016, SuperGuide, as always, will regularly update readers on any proposed changes to the contributions caps (and other super changes), and the implications of such changes on super strategies.The list … [Read more...]

Double contributions tax for high-income earners

Anyone with an adjusted taxable income of more than $300,000 (including rental property losses and other items) now pays 30% tax on concessional contributions paid into a super fund, doubling the super contributions tax bill for high-income earners.The regular contributions tax is a flat rate of … [Read more...]