Contribution limits

There are contribution limits which apply to any extra payments that you choose to put into your super account. These are known as voluntary payments and can be classified as either non-concessional or concessional.

Non-concessional contributions Contributions made after tax	Concessional contributions Contributions made before tax
Personal contributions, where you have already paid tax on earnings. EG. You have an extra $5,000 of savings in your bank account and decide to put it into super. You would have already paid tax on this amount when you earned it.	Salary sacrifice contributions Employer Superannuation Guarantee contributions Personal tax-deductible contributions made by a self-employed person
Limit or ‘cap’ on contributions is $150,000² a year Or If you are under 65 years of age you can 'bring forward' two years worth of contributions giving you a cap or limit of $450,000 for the three years rather than $150,000 limit each year of the three years. Any amounts you contribute over the cap will be taxed at the top marginal tax rate of 46.5%. Note - Any part of your personal contribution that you later claim as a tax deduction will be taxed at 15% and will be reclassified to concessional contributions (this is only applicable to self-employed people)	Limit or ‘cap’ for concessional contributions is $25,000 a year for people less than age 50¹ For anyone over age 50, the limit is $50,000 (not indexed)^* Any amounts you contribute over the cap will be taxed an additional 31.5% (including Medicare Levy) If you have more than one super fund, contributions made to all your funds during a financial year are added together and count towards the contribution limits.

Non-concessional contributions

Contributions made after tax

Concessional contributions

Contributions made before tax

Personal contributions, where you have already paid tax on earnings.

EG. You have an extra $5,000 of savings in your bank account and decide to put it into super. You would have already paid tax on this amount when you earned it.

Salary sacrifice contributions

Employer Superannuation Guarantee contributions

Personal tax-deductible contributions made by a self-employed person

Limit or ‘cap’ on contributions is $150,000² a year

If you are under 65 years of age you can 'bring forward' two years worth of contributions giving you a cap or limit of $450,000 for the three years rather than $150,000 limit each year of the three years.

Any amounts you contribute over the cap will be taxed at the top marginal tax rate of 46.5%.

Note - Any part of your personal contribution that you later claim as a tax deduction will be taxed at 15% and will be reclassified to concessional contributions (this is only applicable to self-employed people)

Limit or ‘cap’ for concessional contributions is $25,000 a year for people less than age 50¹

For anyone over age 50, the limit is $50,000 (not indexed)^*

Any amounts you contribute over the cap will be taxed an additional 31.5% (including Medicare Levy)

If you have more than one super fund, contributions made to all your funds during a financial year are added together and count towards the contribution limits.

¹ The Concessional Contribution Cap is indexed annually in line with average weekly ordinary time earnings 'AWOTE'.

*This transitional contributions cap applies to members aged 50 years or over and is available until 30 June 2012, when the limit will decrease to $25,000. The Government has announced changes that, if passed by parliament will permanently increase the concessional contribution cap to $50,000 for individuals who are 50 years and older and have super balances below $500,000.

²The non-concessional contibution cap is six times the amount of the concessional cap which is indexed annually.

This information has been provided as a guide only, and is not a substitute for professional taxation advice. As the tax rules in relation to superannuation can be complex we suggest that you seek professional advice before making any decisions. For questions about tax on superannuation, we strongly advise you to contact the ATO on 13 10 20.