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.

Excess contributions rules: A quick summary

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. You also need to understand the financial (or other) consequences of exceeding those … [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 stinker still smells: Cut to non-concessional contributions cap

On 3 May 2016, as part of the 2016 Federal Budget, federal treasurer Scott Morrison mucked up the retirement plans of countless Australians when he immediately cut the non-concessional (after-tax) contributions cap, taking effect from 7.30pm on 3 May 2016 (subject to legislation).Effective from … [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...]

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...]

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...]

Concessional contributions caps: 10 facts you should know

We receive many questions about the concessional contributions caps. Throughout 2016 and into 2017, 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 more high-income earners

Note: Currently (and until 30 June 2017), anyone earning an ‘income for surcharge purposes’ of more than $300,000 pays an extra 15% tax (total of 30%) on concessional (before-tax) super contributions. super contributions. On 3 May 2016, the Coalition government announced its intention to lower the … [Read more...]

Superannuation changes: What rules apply for the 2016/2017 year?

Although the newly elected Coalition government has announced significant amendments to Australia’s superannuation rules, many of the big-ticket super policies are not changing, and many of the proposed changes will not apply for the 2016/2017 year.Apart from the $500,000 lifetime after-tax … [Read more...]

Super concessional (before-tax) contributions: 2016/2017 survival guide

Note: The concessional contributions caps for the 2016/2017 financial year are not affected by the 2016 Federal Budget announcement to reduce the size of the annual concessional cap from 1 July 2017. For information about the proposed, lower concessional cap of $25,000 for all age groups, effective … [Read more...]