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.

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...]

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

The May 2016 Federal Budget was 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 now confirmed the federal election is to be held on 2 July 2016.The ALP made a preliminary response to the Coalition’s … [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...]

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...]