The superannuation contributions caps for concessional (before tax) and non-concessional (after tax) contributions have been cut for the 2017/2018 year. (Note that the higher contributions caps applicable for the 2016/2017 year, were the same limits that were in place for the 2015/2016 year, which are also set out later in the article.)
Concessional contributions include your employer’s compulsory Superannuation Guarantee (SG) contributions, your salary-sacrificed contributions, or any contributions claimed as a tax deduction. See first table below.
Non-concessional (after-tax) contributions are super contributions made from after-tax dollars or non-taxed savings. See second table below.
What is the concessional contributions cap for the 2017/2018 year?
Taking effecting since 1 July 2017, the general concessional contributions cap has dropped to $25,000 for all ages.
Important: The higher cap of $35,000, for those who are aged 49 years or older on the last day of the previous financial year (30 June), does not apply from the 2017/2018 year onwards.
Concessional contributions cap, for the 2016/2017 year: If you’re aged 48 years or younger on the 30 June 2016, you could contribute up to $30,000 in concessional contributions for the 2016/2017 year. If you’re aged 49 years or older on the 30 June 2016, then you could contribute up to $35,000 a year in concessional contributions for the 2016/2017 year.
For more information on concessional contributions, see SuperGuide articles:
- Super concessional (before-tax) contributions: 2017/2018 survival guide
- Concessional contributions caps to be slashed from July 2017
- Concessional contributions caps: 10 facts you should know
- Salary sacrificing and super: 10 facts you should know
- Superannuation and employees: 10 facts about your super entitlements
- Super opportunity: Catch-up concessional contributions from July 2018
Concessional contributions cap for 2017/2018 year, 2016/2017 year (and earlier years)
|Income year||Under 49*|
Aged 48 years or younger on 30 June of previous financial year
|49 years to 59 years*|
Aged 49 years or older on 30 June of previous financial year
|59 years and over**|
|*Concessional contributions cap for older Australians applies in the following way for different financial years:|
What is the non-concessional (after-tax) contributions cap for 2017/2018 year?
For 2017/2018 year: Taking effect since 1 July 2017, a lower annual non-concessional contributions cap of $100,000 applies to each person, and the 3-year bring-forward cap is $300,000. Note you can only make non-concessional contributions from 1 July 2017, if your total superannuation balance is lower than $1.6 million, and a restricted cap applies if your total superannuation balance is higher than $1.4 million.
For 2016/2017 year: The $180,000 after-tax cap, and the 3-year $540,000 bring-forward cap applied until 30 June 2017.
Generally speaking, non-concessional contributions are voluntary contributions not claimed as an income tax deduction by you, or your employer.
The non-concessional (after-tax) contributions cap for the 2017/2018 year is $100,000. The non-concessional contributions cap was $180,000 for the 2016/2017 year, and for the 2015/2016 year, and for the 2014/2015 year.
If you take advantage of the bring-forward rules during the 2017/2018 year, then you can make up to $300,000 in non-concessional contributions in one year, or over 3 years in various combinations. Note that if you have triggered the bring-forward rule in the previous financial year/s (2016/2017 year or 2015/2016 year), then you need to take account of the previous year’s or years’ non-concessional contribution/s and the current year’s non-concessional contribution when counting up non-concessional contributions.
Note: If a bring-forward has crossed over into the 2017/2018 year, then be mindful of the transitional rules in place. If your total superannuation balance is $1.4 million or more, then you also need to be mindful of special rules in place .For more information on the transitional rules and the new total superannuation balance restriction, see SuperGuide articles New $100,000 cap: Cut to non-concessional contributions cap and Your 2017/2018 guide to non-concessional (after-tax) contributions .
Beware bring-forward trap
If you’re under the age of 65, you have the opportunity to bring forward the annual non-concessional cap from future years. If you’re aged 64 years or younger on 1 July of a financial year, then you can take advantage of the bring-forward rules during that entire financial year.
For example, if you’re aged 64 on 1 July 2017, then you can make up to $300,000 in non-concessional contributions during the 2017/2018 financial year, subject to meeting the work test if you make those contributions after turning 65, and subject to meeting the other conditions of the bring-forward rule.
Warning: If you trigger the bring-forward rules in one year, and the contribution caps are indexed the following year, then your limit remains the cap that was in place in the year that you triggered the bring forward rules. You cannot take advantage of the indexation for the following two years, although if a bring-forward has crossed over into the 2017/2018 year, then be mindful of the transitional rules in place (see SuperGuide article Non-concessional contributions: 10 facts about new $100,000 cap). For more information on the general bring-forward rules see SuperGuide article Bring-forward rule: 10 super facts you should know.
But some good news… If you aged 63 or 64, you can take advantage of the bring-forward rules without satisfying the over-65 work test rules even though your contributions may represent a period for when you are aged 65 or over. For more information on this special rule for 63 year-olds or 64 year-olds see SuperGuide articles Non-concessional contributions: Tread carefully when age 63 or 64 or 65 and Super contributions: Turning 65 part-way through the year.
For more information on the non-concessional (after-tax) contributions caps, see the following SuperGuide articles: