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Contribution caps 2020/21: know your limits

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Published 24 November 2020

There are generous tax incentives for your superannuation contributions. This is what makes superannuation one of the best ways to save for your retirement.

However, there are limits to how much you can contribute. These limits are called your contribution caps, and there are two types:

  • Concessional contributions cap – your limit for before-tax contributions, such as employer contributions and salary sacrificing.
  • Non-concessional contributions cap – your limit for after-tax contributions, such as personal contributions using money which has already been taxed.

If you exceed your contribution caps for the financial year, you may have to pay extra tax and a fee. This article explains both types of contribution caps and how you can keep track of them during the year.

Concessional contributions cap

Concessional contributions are payments into your superannuation from your pre-tax income. Examples include employer contributions, salary sacrificed contributions and tax-deductible personal contributions.

These contributions are taxed at 15% when they enter your superannuation. For most people, this tends to be lower than their marginal rate.

For financial year 2020/21, a concessional contributions cap of $25,000 per annum applies to all individuals, regardless of age. 

Each financial year (since 2018/19), you may be able to ‘carry forward’ any unused amounts under your cap into the next financial year – as long as your total superannuation balance was less than $500,000 at the end of the previous financial year. These carried forward amounts will expire after five years.

Excess concessional contributions are included in your taxable income. They are taxed at your marginal tax rate plus an excess concessional contributions charge. 

If you exceed your annual cap, you can choose to withdraw up to 85% of your excess concessional contributions from superannuation. The Australian Taxation Office (ATO) will contact you to explain your options.

If there’s a chance you could exceed your cap during the financial year, you should talk to your payroll area or contact us here at LGIAsuper.

For further information, download our Contribution caps info sheet.

Non-concessional contributions cap

Non-concessional contributions are payments into your superannuation using money that has already been taxed. These contributions are not taxed when they enter your superannuation.

For financial year 2020/21, non-concessional contributions are capped at $100,000 per annum. Individuals with a superannuation balance of $1.6 million and more are not eligible to make non-concessional contributions. 

If you are aged under 65 years, you can ‘bring forward’ the next two years’ non-concessional contributions, providing your total superannuation balance at 30 June of the previous year was less than $1.4 million. This means you can contribute up to $300,000 over a three-year period.

If you exceed the non-concessional contributions cap, your excess contributions could be taxed at the maximum rate of 47%.

For further information, download our Contribution caps info sheet.

Tracking your caps

During the financial year, we recommend you check that you are staying under your contribution caps. This will help you avoid paying extra tax and charges. 

Similarly, if you are still considering making additional contributions, knowing how much you have under your cap can help your decision.

The quickest and easiest way to check your contribution caps is to log in to Member Online. Your account will display your contribution totals and caps for the financial year.

Alternatively, you can contact us on 1800 444 396, and we can provide this information to you.

Financial advice

Our team of superannuation specialists and financial advisers can help you discover the best way to contribute into your superannuation.

We offer our members Super Health Check appointments over the phone or video call, at no additional cost. We look at the current health of your superannuation, discuss different ways to grow it, and check that you are on track for a comfortable retirement.

Our financial advice service* can help you plan for a better financial future. LGIAsuper members can receive limited advice on a single topic related to superannuation, such as salary sacrificing. More comprehensive financial advice is also available, and fees will vary depending on the type and complexity of advice.

Call us on 1800 444 396 to discuss the type of appointment that would suit you best.


* LGIAsuper has engaged Industry Fund Services Limited (IFS) ABN 54 007 016 195 AFSL No 232514 to facilitate the provision of financial advice to members of LGIAsuper. LGIAsuper Financial Advisers are Authorised Representatives of IFS.

Learn more

Watch our online tutorial to explore this topic further:

Superannuation contributions