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

Contribution Caps for Super

If you make a contribution above the cap, then you may need to pay additional tax.

The cap amount as well as the additional tax you have to pay rely on whether the contributions are non-concessional or concessional.

Concessional (before tax) contributions can include:
• compulsory contributions funded by the employer – like the SG or super guarantee
• salary sacrifice contributions
• insurance premiums as well as administration fees funded by the employer
• income tax deduction contributions– like contributions if you’re self-employed • taxed contributions that are notional if you’re a defined benefit fund member
• fund reserve amounts.

Non-concessional (after tax) contributions can include:
• personal contributions made by the employer from your non-concessional income
• contributions made by your spouse to your superannuation fund
• personal contributions claimed as not an income tax deduction
• contributions more than your after tax contributions cap which haven’t been taken from the super fund
• contributions more than the capital gains tax cap amount
• the majority of transfers from super funds that are foreign.

Cap limits

The amount of cash you can pay into a super are limited every financial year prior to paying additional tax – these are known as “super concessional contribution caps.” A before tax contribution comprises the SG (Super Guarantee) and any amount you “salary sacrifice” (your salary’s concessional voluntary contributions) into super. Before tax contributions attract 15% tax when contributed.

From July 1 2013, going beyond the concessional cap can have excess, which is taxed at one’s personal tax rate with interest.

A $30,000 before tax contribution cap applies in the financial year 2015-2016. On the other hand, folks who are over 50 can make contributions up to $35,000 with no penalty.

Contributing more than the cap

You can make contributions in excess of the cap, but you must know the tax amount you may need to pay on the extra amounts. If you decide to go beyond the concessional cap, then you may need to settle the marginal tax rate on the extra amount instead of 15%. Moreover, an extra charge is made. This charge’s amount reflects the tax’s notional interest charge being settled well ahead than was the situation for other income that relate to the budget year concerned.

Seek assistance from a skilled financial adviser prior to exceeding either your non-concessional or concessional cap.

Making contributions to your super is one of the best decisions you can make. Learn more about it by reading our articles 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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