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Concessional Contribution Cap Changed

Concessional or pre-tax contribution to your super includes, employer contributions, salary sacrifice and personal contribution, which means your super fund pays 15% tax on the contribution.

Contribution cap limit the amount that can be contributed for a member each financial year. The concessional contribution cap is $25,000 for everyone effective from 1 July 2017. Previously, the concessional contribution cap was $35,000 for people above 49 years and $30,000 for everyone else. A member whose total contributions in a year exceed the contribution caps may be liable for additional tax on the excess.

From 1 July 2018, one will be able to ‘carry-forward’ any unused amount of concessional contribution cap and access it on a rolling basis for five years. It is only eligible if the Total super balance is less than $500,000 at the end of 30 June of the previous financial year.

 

To know how to utilise concessional contribution cap efficiently, please contact us on 08 9242 3555 or email admin@businessmantra.com.au

 

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