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I had no idea where my lost super was or the names of the funds. I just new it was scattered everywhere and I should definitely have more than $3,000 in my super. Australian Super Finder found all 7 of my funds and now my balance is almost $50,000. Thank you so much for getting my super back on track. ? Leonie, Thomastown VIC


Super Facts and Tips

Superannuation Contributions Caps Explained

And once you are aware of the amount you can contribute, you may make good use of the available tax concessions. Moreover, staying in the limits means that you can avoid making tax contribution than expected. The limits, or contributions caps, usually vary according to your age as well as the kind of tax contributions you make. Below, we look into non-concessional and concessional contributions.

1. What you have to know about before-tax (concessional) superannuation contributions

These are tax contributions you make prior to paying on them. They include:

• Employer contributions on your behalf, such as SG (Super Guarantee)
• Salary sacrifice contributions you choose to pay from your before-tax (concessional) income
• Personal concessional contributions, for instance, contributions made if you are self-employed.
• Concessional contributions only have 15% of tax, meaning you can reduce your taxable income.

What is the “concessional contributions cap?”

For the 2015-2016 financial year, the contributions cap is $30,000. If you were 49 years old or over on the 2014-2015 financial year’s last day, your contributions cap is $35,000.

What takes place if you review the concessional contributions cap?

The excess concessional contribution amount is counted in your assessable salary, and you contribute an interest payment. If you don’t decide to withdraw the concessional contributions from superannuation, this excess will count towards the non-concessional contributions cap as well.

2. What you have to learn about after-tax (non-concessional) contributions

These are contributions made from taxed sources. They include:

• Contributions made from your savings or take-home pay when tax deduction hasn’t been claimed
• Contributions made for you by your spouse.

What is the “non-concessional contributions cap?”

You can pay up to $180,000 annual without paying any further tax. On the other hand, if you would like to pay more and you are under 65 years old throughout the 2015-2016 financial year, you could put (bring forward) 3 years’ worth of after-tax contributions into your superannuation, meaning you could pay up to $540,000.

What takes place if you review the non-concessional contributions cap?

You can decide to withdraw the amount of excess non-concessional from superannuation as well as 85% of an “associated earnings amount.” Meaning, the amount your excess contributions made while in your superannuation account, the total associated earnings amount will be counted in the assessable income for the financial year as well as taxed at a marginal rate. Otherwise, the excess non-concessional contributions will be taxed at 49%.

The eligibility requirements to remember are mentioned below:

If you are between 65 years and 74 years old, and would like to make voluntary superannuation contributions, then you have to pass a certain work test. This requirement entails that you should have worked no less than 40 hours in 30 consecutive days before you make your contribution. If you are 75 years old or over, you will not be able to contribute voluntarily to superannuation.

It would be plausible on your part to read more about this subject on our knowledge base at www.australiansuperfinder.com.au

All information on this website is of a general nature only. We have not taken into account your financial situation, needs or objectives. You need to make up your own mind and ascertain yourself if it is right for you. We recommend you read the product disclosure statement(s) and the financial services guide before making any financial decision.

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