Concessional Contributions Caps Halved
From July 2009, the Federal Government lowered the amount of concessional, or before tax, contributions you can make tax effectively to your super. Concessional contributions include your employer’s super contributions, any salary sacrifice amounts you make and any personal contributions for which you claim a tax deduction.
Under the new rules, the total concessional contributions which can be made each financial year are:
- $25,000 for people under 50 years; or
- $50,000 for people 50 years or over. This higher limit applies until 30 June 2012.
What Happens If I Go Over the Cap?
It’s important you don’t exceed your concessional contributions cap. However if you do, your excess contributions will be taxed at an additional 31.5%, bringing the total tax to 46.5% (after contributions tax of 15% is paid). Excess concessional contributions will also be counted to the non-concessional (or ‘after tax’) contributions limit.
Are there different rules for members of the public sector superannuation schemes?
Special conditions do apply for members of defined benefit schemes. Select your fund from the list below to find out details for your scheme.
