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.

Super contributions: Beef up using a bring forward

Q: Under the 2-year bring-forward of non-concessional contributions, if a person makes an after-tax contribution of $180,001 when age 64 during the 2015/2016 year, can he continue to contribute the balance of the $540,000 anytime during the next 2 years without having to satisfy the work test?A: … [Read more...]

Concessional contributions: Turning 50 is all about timing

Q: I was born in May 1966 (turning 50 in May 2016). Can you explain which financial year I am considered to be over 50 in relation to the special $35,000 concessional contributions cap?A: For the benefit of other readers, I will first explain the concessional (before-tax) contribution rules for … [Read more...]

Superannuation contributions: Wearing two caps

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 2015/2016 year?A: ‘Yes’ is the answer to the … [Read more...]

Bring-forward rule: 10 super facts you should know

I receive a lot of questions from readers seeking information about how the non-concessional (after-tax) rules work; in particular, how the bring-forward rules works. The bring-forward rule works over a 3-year period so it is very important that you keep track of the size and timing of any … [Read more...]

Contributions caps relate to financial years, not calendar years

Q: I understand the three-year bring-forward rule that allows you to contribute up to $540,000 in after-tax contributions. My question is: What date does the second three-year period start? For example, if I contributed $540,000 on 28 Dec 2015, does that mean I can contribute another $540,000 on or … [Read more...]

Does the government’s co-contribution count towards my contributions cap?

Q: Does a co-contribution received after using up the total bring forward cap of $540,000 mean that an excess contribution has been made, or is the Government co-contribution excluded from the after-tax contribution cap?A: A superannuation co-contribution is a super contribution paid by the … [Read more...]

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...]