Have you maximised your opportunities this financial year?
As you are probably already aware, there are caps on the amount you can contribute to your superannuation each financial year. If you contribute more than these caps you may have to pay extra tax.
The cap amount and how much extra tax you have to pay depends on your age and whether the contributions are:
Before Tax (known as Concessional Contributions)
After Tax (known as Non-Concessional Contributions)
Concessional Contribution Cap
The standard concessional contributions cap will increase from the current $25,000 pa to $30,000 pa for the 2014/15 tax year. Concessional contributions include:
• Employer contributions (including contributions made under a salary sacrifice arrangement)
• Personal contributions claimed as a tax deduction by a self-employed person.
• Contributions for which a tax deduction has been claimed
Note: For anyone aged 59 or over on 30 June 2013 the temporary concessional contributions cap for 2013/14 is $35,000. For anyone aged 49 or over on 30 June 2014 the temporary concessional contributions cap for 2014/15 is $35,000.
Non-Concessional Contribution Cap
The non-concessional contributions cap will also increase to $180,000pa (i.e. 6 x $30,000) for 2014/15 and $540,000 (i.e. $180,000 x 3) when applying the additional 2 year ‘bring forward’ rule.
People under age 65 at any time in the financial year may bring forward two years’ worth of non-concessional contributions allowing them to contribute $540,000 at any time over a three-year period without exceeding the cap. Non-concessional contributions include:
• Personal contributions that have not been claimed as a deduction
• Spouse contributions
• Contributions which exceeded your before-tax cap
If you have any questions regarding the content above, or your individual contribution limits, please don’t hesitate to contact us.
Figures in this article have been sourced from the following ATO websites –
This material provides general information, current at 11/03/2014, which FMS Group believes to be reliable at the time of publication. However, we are not the author of this information and therefore do not confirm its content.