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.

Double contributions tax for more high-income earners

Note: Currently, anyone earning an adjusted taxable income of more than $300,000 pays an extra 15% tax (total of 30%) on super contributions. Previously, the ALP had announced a policy to bring the income thresholds down to $250,000, and the Coalition government support lowering the threshold to … [Read more...]

Concessional contributions cap for over-50s to be slashed from July 2017

 On 3 May 2016, as part of the 2016 Federal Budget, the Coalition government has announced it intends to scrap the over-50s concessional (before-tax) contributions cap of $35,000, and reduce the general concessional contributions cap to $25,000, from its current $30,000, taking effect from … [Read more...]

Super contributions caps for the 2015/2016 year

The superannuation contributions caps for concessional (before tax) and non-concessional (after tax) contributions will not increase for the 2015/2016 year. The contributions caps applicable for the 2015/2016 year, will be the same limits in place for the 2014/2015 year. Concessional … [Read more...]

2016 Federal Election: What superannuation and retirement policies can you expect?

Save the dates! The May 2016 Federal Budget is to be released on 3 May 2016, rather than its usual date of 10 May 2016. Linked to the Budget night change, Prime Minister Malcolm Turnbull has confirmed the federal election is highly likely to be held on 2 July 2016 (since the Senate hasn’t done what … [Read more...]

Concessional contributions: SG and public servants

Q: I’m a member of a public sector fund, which is a hybrid defined contribution/defined benefit scheme. While I pay 5% of salary towards a ‘Member Benefit’, the super fund doesn’t have a 9.5% employer contribution, as my ‘Employer Benefit’ is based on years of service and Final Average Salary. I’m … [Read more...]

Warning: Government super website is incorrect and out-of-date

Q: I have been doing some research on the maximum amount that can be salary sacrificed into super for someone over age 60, and would appreciate your comments on a government website. It says the concessional contributions cap is $50,000, and that this cap has been indexed since the 2012/2013 year, … [Read more...]

SMSF investment: Buying commercial property, and borrowing options

Q: My wife and I purchased a licensed post office and freehold from Australia Post 20 years ago. In addition to the licence, we acquired one title with one building (part of the building is leased to a commercial tenant and part we use to run the post office). A freestanding shop was added in 2002. … [Read more...]

Contributions caps: Which financial year do I use for my salary sacrifice contributions?

Q: I salary sacrifice into my super, and I am planning for the rest of the financial year. If I make my super contribution for the month of June 2016, and the super fund does not register receipt of that super contribution until July 2016, will this contribution fall under the 2015/2016 financial … [Read more...]

Super alert: Have you counted your super contributions lately?

Note: This article outlines the super contribution rules, and also provides a list of helpful articles that explain how the two types of contributions caps work, and the general contribution rules.You can make two types of super contributions: concessional (before-tax) contributions and … [Read more...]

Excess contributions: Happy ending to a super horror story

Note: This article contains good news for those worried about exceeding the super contributions caps. The excess contributions rules are now a lot fairer than in the past. This article also explains the unfair rules that used to be in place before July 2013.You can make two types of super … [Read more...]