A concessional contributions cap of $27,500 per annum applies to all individuals regardless of age (2022/23).
The cap includes all employer super payments (including Superannuation Guarantee amounts), salary sacrificed payments and personal contributions for which you claim a tax deduction.
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 super balance was less than $500,000 at the end of the previous financial year. These carried forward amounts will expire after five years.
Non-concessional contributions are capped at $110,000 per annum (2022/23).
Individuals with a super balance of $1.7 million and more are not eligible to make non-concessional contributions.
If you are under age 75 you may be able to ’bring forward’ the next two years’ non-concessional contributions caps. This means you can contribute up to $330,000. Generally, the amount can be contributed as one lump sum or spread over the three years but eligibility criteria may apply. It is important to note that if an individual enters into a bring forward arrangement before 1 July 2021, the previous bring forward limit of $300,000 will apply.
For more information view the contributions cap info sheet.
Extra tax of 47% may apply where excess non-concessional contributions remain in the fund.
To avoid that liability, excess non-concessional funds, together with 85% of earnings that have resulted from the contribution, may be withdrawn without penalty.
Excess concessional contributions will be included in your assessable income for tax purposes and are also liable for an excess contributions charge.
If you think you are likely to breach either of the caps, talk to us about your options.
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