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
Making superannuation contributions
A Super Guide
Superannuation contributions (including personal contributions and employer contributions) are a cash amount, or in some cases an asset, that is contributed to a complying superannuation fund, on behalf of an individual under the age of 75. Super contributions and investment earnings on those contributions are the key to accumulating a substantial retirement nest egg.
You can make two types of superannuation contributions to your super fund. You, or your employer, can make concessional (before-tax) contributions to your super fund. You, or your spouse, or the federal government, can make non-concessional (after-tax) contributions to your super fund.
You have two caps – a concessional contributions cap ($25,000 for the 2017/2018 year, and for the 2018/2019 year), and a non-concessional contributions cap ($100,000 for the 2017/2018 year, or for the 2018/2019 year).
Note: If you are aged 65 years or over, you must satisfy a work test before making super contributions (see SuperGuide article For over-65s: Ten tips when making super contributions).
Important: The Total Superannuation Balance is a new restriction on super contributions. For the 2017/2018 and 2018/2019 year, if you have more than $1.6 million or more in super, you cannot make non-concessional (after-tax) contributions, receive spouse contributions, or receive the government co-contribution (see SuperGuide article Total Superannuation Balance: 7 reasons why your TSB matters).
In this section, discover how much your employer must pay into your superannuation fund, how much you can contribute, the tax-free bonus the federal government gives you, contributions strategies and everything you need to know about making personal superannuation contributions. Find out how you can make concessional (before-tax) contributions, non-concessional (after-tax) contributions, receive co-contributions and more.
Click on the links directly below to access the following topics about making superannuation contributions:
- Superannuation contributions strategies
- 2017/2018 Contributions Guides
- Super contributions caps
- Superannuation Guarantee (SG)
- Salary sacrifice and super
- Tax-deductible super contributions
- Spouse contributions
- Total superannuation balance
- Contributions tax
- Excess contributions
As a starting point you may want to consider reading the following SuperGuide articles:
Set out below are all SuperGuide articles referring to Making superannuation contributions.
Do I have to be working to make super contributions?
The answer is no, if you’re under the age of 65. An Australian under the age of 65 can make super contributions whether they are working, rearing children, looking after a sick partner, recovering from illness, or on an extended holiday. If you are aged 65 or over then you must satisfy a work test if you’re seeking ... Read more
After-tax super contributions: What are the rules for the 2018/2019 year (and 2017/2018 year)?
The annual non-concessional contributions cap is $100,000 for the 2018/2019 year, and also for the 2017/2018 year. If a person is eligible take advantage of the bring-forward rules, then an individual can make up to $300,000 in non-concessional contributions for the 2018/2019 year (or 2017/2018 year), representing ... 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 refer to the rules applicable for the 2016/2017 financial year). Since 1 July 2017 (from the 2017/2018 year), a lower annual non-concessional (after-tax) contributions cap of $100,000 applies, and ... Read more
Latest super changes: ATO Guidance Notes and Law Companion Rulings
You have to worry about the complexity of super changes, when the Australian Taxation Office releases a suite of Law Companion Rulings (LCRs), trying to explain many of the July 2017 changes, and several of these LCR documents exceed 100 pages a pop. The LCRs have been written with advisers and accountants in mind, ... Read more
Employer super contributions: SG rate 9.5% for 2018/2019 and 2017/2018 years
The Superannuation Guarantee rate remains at 9.5% for the 2018/2019 financial year, and for 2017/2018 financial year (and also remained at 9.5% for the 2016/2017 financial year). Superannuation Guarantee contributions are compulsory employer superannuation contributions paid to eligible employees (to find out who is ... Read more
Super opportunity: Catch-up concessional contributions from July 2018
Any Australian considering making super contributions since 1 July 2017 needs to be mindful that the annual concessional (before-tax) contributions cap is much lower than previous financial years. Since July 2017, the annual concessional contributions cap has dropped to $25,000, which is a lot lower than concessional ... Read more
Concessional contributions: Catch-up rules from July 2018 (10 Q&As)
In this article, you can find the answers to 10 important questions about the new catch-up concessional contributions rule. For information on the reduced concessional contributions cap since July 2017, see SuperGuide article Concessional contributions caps slashed since July 2017. For a comprehensive guide on ... Read more
Spouse contributions tax offset: 10 facts you need to know
These days it’s rare for a government to be more generous about handing out benefits, but when it comes to helping boost your spouse’s super, that infrequent event is set to happen. Since 1 July 2017, the maximum income threshold for the spouse contributions tax offset jumped from the previous meagre upper limit of ... Read more
2018 Federal Budget summary: Superannuation and retirement measures
On 8 May 2018, Treasurer Scott Morrison released his third federal budget. His budget speech was titled ‘A plan for a stronger economy.’ He says: “The Turnbull Government will build a stronger economy to create more jobs, provide tax relief to encourage and reward working Australians, guarantee essential services and ... Read more
Tax-deductible super contributions: Claim no more than your income
Q: If I make a personal concessional payment of $25,000 (tax-deductible) into my super fund and my personal taxable income for 2017/2018 is $20,000, are there possible tax penalties because I’m claiming $5,000 more than my taxable income? I suggest you chat to a registered tax agent, typically an accountant to ... Read more
Tax-deductible super contributions: Timing start of pension is essential
Q: I put money into my SMSF in June 2017 from a capital gain. I wasn’t able to tell the fund at that time what it was because my accountant hadn’t completed the figures so that notice was sent to them in August 2017. As I understood the rules, so long as the money was in the fund at June 2017, I could then withdraw any ... Read more
