If you are under 50 years old, for financial year 2013-14 concessional cap is $25,000
For the 2014-15 financial year, the concessional cap for individuals who are 49 years old or over on 30 June 2014 is $35,000.
There is 15% tax payable by your fund on concessional (before-tax) contributions paid into a super fund. Your super fund usually reduces your super account by your share of this tax.
Concessional contributions may also be referred to as ‘before-tax contributions’.
Types of concessional (before-tax) contributions include:
• employer contributions, such as
• compulsory employer contributions paid by your employer
• any additional pre-tax super contributions your employer makes
• salary sacrifice payments made to your super fund
• other amounts paid by your employer from your pre-tax income to your super fund,
such as administration fees and insurance premiums
• contributions that you are allowed as an income tax deduction, such as contributions
you make if you are self-employed (to claim a tax deduction for your personal super
contributions, you must first complete a notice of intent to claim deduction in
the approved form and give it to your super fund)
If you decide to split your before-tax contributions and give some to your spouse, these contributions still count towards your concessional cap.
Non-concessional (after-tax) contributions
For financial year 2013-14 non-concessional contribution is $150,000.
Non-concessional contributions may also be referred to as ‘after-tax contributions’.
Types of non-concessional (after-tax) contributions include:
• non-concessional (after-tax) contributions that you or your employer makes on
your behalf from your after-tax income
• contributions your spouse (including a same-sex spouse) makes to your super fund,
unless your spouse makes the contributions because they’re your employer
• personal contributions that are not claimed as an income tax deduction
• excess concessional (before-tax) contributions that you have not elected to
release from your super fund
• contributions in excess of your capital gains tax (CGT) cap amount
• retirement benefits you withdraw from your super fund and ‘re-contribute’ to super
• most transfers from foreign super funds but excluding amounts included in your
fund’s assessable income.
Some personal contributions may be excluded from counting towards your non-concessional (after-tax) contributions cap for a financial year. Some of the exclusions include contributions:
• made from personal injury payments
• you have chosen to count towards your CGT cap amount that have not gone over your lifetime limit.
These types of non-concessional (after-tax) contributions will only be excluded if you meet all of the conditions. You must also specifically ask your fund to exclude them by providing your fund with a Capital gains tax cap election or Contributions for personal injury form before or when you make a contribution.