Super contributions – Mind the Cap

Are you making pre -tax superannuation contributions?

Your pre tax, (concessional) contributions include:

  • employer contributions, (superannuation guarantee)
  • any amount you salary sacrifice into superannuation
  • personal contributions you claim as a tax deduction

Right now the total amount you can contribute to your superannuation before tax, is capped at:

  • $35,000 per year if you are aged 50 or over.
  • $30,000 per year if you are aged under 50.

The cap will reduce to $25,000 per financial year from 1 July 2017, regardless of age.

From 1 July 2018 if you have less than $500,000 in total superannuation you will be allowed to carry forward your unused before-tax (concessional) contributions for up to five years.  The first year in which you can access unused concessional contributions is 2019–2020.