Note: Since 1 July 2017, anyone earning an ‘income for surcharge purposes’ of more than $250,000 pays an extra 15% tax (total of 30%) on concessional (before-tax) super contributions. Before July 2017 (and since July 2012), the ‘threshold income for surcharge purposes’ was $300,000, and anyone earning an ‘income for ... Read more
Excess contributions
The amount of money you can deposit in superannuation fund each year, is subject to superannuation contributions caps.
Concessional (before-tax) contributions are subject to an annual concessional contributions cap, which is increased periodically.
Non-concessional (after-tax) contributions are also subject to an annual non-concessional contributions cap (indexed in line with the concessional contributions cap), and Australians under the age of 65 can bring forward up to 2 years of the non-concessional cap in a single year (bring-forward rule).
If your super contributions (concessional or non-concessional) exceed the relevant cap, the amount of super contributions above the cap are known as excess contributions – excess concessional contributions if above the concessional cap, and excess non-concessional contributions if above the non-concessional cap.
For a summary of the excess contributions rules, see SuperGuide article Excess contributions rules: A quick summary. For a quick explanation of the rules, continuing reading the next few paragraphs.
Excess concessional contributions
Excess concessional (before-tax) contributions and associated earnings are counted towards the person’s assessable income for the financial year in which the excess contributions were made, less a 15% tax offset for contributions and earnings tax already paid. Excess concessional contributions can be withdrawn from the super fund to pay the additional income tax.
Excess non-concessional contributions
Excess non-concessional (after-tax) contributions can be withdrawn, and the associated earnings on those excess contributions count towards the person’s assessable income, less a 15% tax offset for contributions and earnings tax already paid. If a person chooses not to withdraw the excess non-concessional contributions, then those excess contributions are subject to the top marginal rate of tax.
Below are key articles on excess contributions:
Set out below are all SuperGuide articles referring to Excess contributions.
Non-concessional contributions: 10 facts about the $100,000 cap
The annual $100,000 non-concessional (after-tax) contributions cap became law on 29 November 2016, and took effect from 1 July 2017 (from the start of the 2017/2018 year), and continues to apply for the 2018/2019 financial year. We receive a lot of questions from readers seeking information about how the ... Read more
The short story on super contributions limits (2018/2019 year)
You can make two types of superannuation contributions – concessional (before-tax) contributions and non-concessional (after-tax) contributions – and each type of contribution has a separate limit known as a contributions cap (see text and tables below). Short story on concessional contributions Short story on ... Read more
Super concessional (before-tax) contributions: 2018/2019 survival guide
Note: This article explains the rules applicable to concessional contributions for the 2018/2019 year (and for the 2017/2018 year, and later in the article, also explains the rules applicable for the 2016/2017 year, and earlier financial years). Superannuation contributions can be divided into two types — ... Read more
Bring-forward rule: A definitive super guide
Note: The information in this article relates to the 2018/2019 financial year and the 2017/2018 financial year (and also refers to the rules applicable for the 2016/2017 financial year). For the 2018/2019 year, the annual non-concessional contributions cap remains at $100,000, and in turn, the bring-forward cap ... Read more
Your 2018/2019 guide to non-concessional (after-tax) contributions
Note: This article explains the rules applicable to non-concessional contributions for the 2018/2019 year (and for the 2017/2018 year, and later in the article explains the rules applicable for the 2016/2017 year and earlier years). See also SuperGuide articles New normal: $100,000 non-concessional contributions cap ... Read more
Super contributions caps for the 2018/2019 year (and 2017/2018 year)
The superannuation contributions caps for concessional (before tax) and non-concessional (after tax) contributions for the 2018/2019 year, are the same as those that apply for the 2017/2018 year. (Note that the higher contributions caps applicable for the 2016/2017 year, are also set out later in the ... Read more
Understanding the transitional bring-forward rule (for 2018/2019 and 2017/2018 years)
Q1: What cap applies for the 2017/2018 year, if I triggered the bring-forward rules during the 2016/2017 or 2015/2016 years? Q2: What cap applies for the 2018/2019 year, if I triggered the bring-forward rules during the 2016/2017 year? Transitional arrangements apply for Australians who are in the middle of a ... Read more
Non-concessional contributions: Tread carefully when aged 63 or 64 or 65 (3 Q & As)
Note: For the 2018/2019 year, and for the 2017/2018 year, the non-concessional cap is $100,000 and the 3-year bring-forward cap is $300,000. For the 2016/2017 year, the non-concessional (after-tax) cap was $180,000, and the 3-year bring-forward cap was $540,000. Q: I am 64 and want to take advantage of the ... Read more
After-tax super contributions: Beef up using a bring forward
Note: For the 2018/2019 financial year (and for the 2017/2018 year), the annual non-concessional contributions cap is $100,000, and the 3-year bring-forward cap is $300,000. (For the 2016/2017 year, the annual after-tax contributions cap was $180,000 and the 3-year bring-forward cap was $540,000.) Q: Under the ... Read more
Super contributions: Bring-forward rule and your Total Superannuation Balance
Since 1 July 2017, your Total Superannuation Balance can affect how much you can contribute to a super fund. If your Total Superannuation Balance is $1.6 million or more (for the 2017/2018 year, or for the 2018/2019 year), then you cannot make any non-concessional (after-tax) contributions – your NCC cap is nil, and ... Read more
Gone but not forgotten: Concessional contributions cap for over-50s
In July 2013, the federal government introduced a temporary concessional contributions cap of $35,000 for over-60s, which was then expanded to 50-somethings from July 2014. The over-50s cap of $35,000 has now been abolished, effective since 1 July 2017. Older Australians have not been able to take advantage of the ... Read more
