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.

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

The 2016 Federal Election on 2 July will decide whether the Coalition’s announced super policies will go ahead, while the ALP has been unusually silent on its proposed super policies, apart from quietly reaffirming two policies, with one measure adopted by the Coalition.The May 2016 Federal … [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...]

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 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...]

10 super planning tips for 2015/2016 year-end

Although many people are still reeling from the unexpected superannuation announcements in the 2016 Federal Budget, it’s important to note most of the planned changes will not affect your superannuation decisions for the 2015/2016 year. The Superannuation Guarantee (SG) rates remain the same, … [Read more...]

Super stinker update: Immediate cut to non-concessional contributions caps

On 3 May 2016, as part of the 2016 Federal Budget, 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. On 12 May 2016, the ATO published further information on this … [Read more...]

Double contributions tax for more high-income earners

Note: Currently (and until 30 June 2017), anyone earning an adjusted taxable income of more than $300,000 pays an extra 15% tax (total of 30%) on concessional (before-tax) super contributions. In April 2015, the ALP announced an election policy to bring the income thresholds down to $250,000, and on … [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 July 2017. … [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...]

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...]