When experts talk about super, they frequently warn about the importance of not going over your annual contributions caps, but you don’t often hear what happens if you do.
The first thing to remember is not to panic.
To help you understand what to expect if you do exceed your contribution cap, SuperGuide has put together a simple explainer.
What are the super contributions caps?
Given the generous tax benefits available for holding your retirement savings in the super system, the government has put in place annual caps or limits on the amount of both concessional (before-tax) and non-concessional (after-tax) contributions that can be made into your super account.
Contribution type
Annual cap or limit
Concessional (before-tax) contributions
- $30,000 regardless of age
- If you have a Total Super Balance of less than $500,000 on 30 June of the previous financial year, you can utilise any unused amount of your cap for up to five years to make a carry-forward contribution. You will not exceed the cap unless you use up both the current year’s cap and all the unused cap space that is available from prior years.
Note: From 1 July 2021 to 30 June 2023, the annual concessional contributions cap was $27,500.
Non-concessional (after-tax) contributions
- $120,000 for the annual general non-concessional contributions cap
- Up to $360,000 over a three-year period if you are aged under 75 and are eligible to use a bring-forward arrangement
- Nil if your Total Super Balance was equal to or greater than the transfer balance cap for the financial year you are contributing  on the prior 30 June. In 2024–25 the transfer balance cap is $1.9 million.
Note: From 1 July 2021 to 30 June 2023, the transfer balance cap was $1.7 million.
