The Australian Government caps the amount you can contribute to your super each year without paying extra tax. There are separate caps for non-concessional and concessional contributions.
What are non-concessional contributions?
Non-concessional contributions are those made from income which you have paid tax on already. These include:
- voluntary contributions (lump sum or regular) not salary sacrified
- standard member or compulsory contributions not salary sacrificed
- any spouse contributiions you receive
Non-concessional contributions in excess of the caps will be subject to extra tax.
What are concessional contributions?
Any money you put into your super from income that you have not yet paid tax on, or you wish to claim a tax deduction for, will be treated as a concessional contribution for tax purposes. These include:
- salary sacrified contributions
- employer contributions
Concessional contributions in excess of the caps will be subject to extra tax and will count towards the non-concessional contributiobns cap.
What are the caps?
The contributions caps for the 2011/12 financial year are:
|
Contribution type |
Concessional |
Non-concessional |
|
Cap |
Under age 50 - $25,000 Aged 50 plus - $50,000 |
$150,000 or if under age 65 $450,000 by bringing forward your cap by up to 3 years |
|
Tax on amounts over the cap |
46.5% |
31.5% in addition to the normal contributions tax rate of 15% |
More information?
It is important that you understand the implications of making excess contributions as it could have significant implications for the amount of tax you pay. We are here to help you, so if you have any concerns contact us.
