Contributions caps

Contribution caps are limits on the super contributions you can make to your super fund each year. There are two types of contributions: concessional (before-tax) and non-concessional (after-tax). Concessional contributions are taxed at 15% in your super fund. Non-concessional contributions are not taxed in your super fund.

The concessional contributions cap is currently $25,000 per year, unless you’re eligible to make carry-forward contributions. Carry-forward contributions allow you to carry-forward any unused concessional contributions cap in any financial year for the next five years.

Concessional contributions include the following types of payments.

• Employer Superannuation Guarantee (SG) contributions.
• Award contributions.
• Any additional pre-tax contributions made by your employer above the compulsory amount required by the SG legislation or Employment Award.
• Any salary sacrifice contributions.
• Any personal contributions which you claim as a tax deduction in your tax return.
• Notional taxed and unfunded defined benefit contributions if you’re a member of a defined benefit fund.

If you exceed your concessional contributions cap, the excess amount is included as assessable income in your tax return. You will pay tax on it at your marginal tax rate, less the 15% tax you will already have paid in your super fund.

The cap for non-concessional contributions is currently $100,000 per year, unless you’re eligible to use the bring-forward rule. The bring-forward rule allows you to bring-forward the next three years of your annual non-concessional contributions cap into the current financial year, meaning you can contribute up to $300,000 without exceeding the cap.

There are two main types of non-concessional contributions:

1. Any personal contributions you make which you don’t claim as a tax deduction in your tax return.
2. Any spouse contributions you make directly into your spouse’s super account.

To learn more about super contributions caps see the following SuperGuide links:

• Super contributions caps for the 2018/2019 year
• Concessional (before-tax) contributions cap
• Catch-up concessional contributions
• Non-concessional (after-tax) contributions cap
• Bring-forward rule
• Total superannuation balance and super contributions