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Home Contribution caps

Contribution caps

There are limits on how much you can add to your super each financial year. Remember to check your contribution caps before making payments. If you contribute more than these caps, you will have to pay extra tax. There are two types of contributions you can make to your super account; before-tax and after-tax. There are separate thresholds for each type of contribution.

Contribution typeIncludesContribution caps FY 2020/21

Employer contributions (i.e. Superannuation Guarantee), Salary sacrifice, Personal contributions you claim as a tax deduction.

Balance and age restrictions apply

You can 'carry forward' unused contributions into the following financial year. Read below.*

Personal contributions (from your bank account or after-tax wage) for which you don't claim a tax deduction, spouse contributions.

Balance and age restrictions apply

You can 'bring forward' future caps to extend this cap. Read below.*
  • From 2021/22 these contribution caps will be increasing.

Carry forward before-tax contributions

You can ‘carry forward’ your unused before-tax contributions from previous years, enabling you to use any of your unused concessional (before-tax) contributions cap on a rolling five-year basis. Your super balance must be less than $500,000 on 30 June of the previous financial year to carry-forward your unused cap.

Bring forward after-tax contribution

Bring forward your non-concessional contributions caps from future years and use them in a shorter time period, either all at once or as several large contributions. You can bring forward the 3 years of your after-tax cap into the current financial year; meaning that within any consecutive three-year period, you can contribute up to $300,000.

Balance restrictions

If you have $1.6 million or more in superannuation, there are further restrictions on how much you can contribute to super.

Your Total superannuation balance is comprised of all of your super assets including pensions and retirement savings accounts. In other words, it’s the total amount you have across all superannuation and related assets.

If your Total superannuation balance was $1.6 million or more on June 30, 2020, you won't be entitled to make after-tax contributions in the 2020/21 financial year. While you can exceed the cap, it means certain concessions are not available, such as:

  • unused concessional contributions cap carry-forward
  • non-concessional contributions cap and eligibility for the bring forward of your non-concessional contributions cap
  • government co-contributions
  • the tax offset for spouse contributions.

This threshold will be increasing in the2021/22 financial year. 

Age restrictions

Age 67-74

Once you reach age 67, you can only make after-tax (non-concessional) contributions if you satisfy a Work Test in the financial year in which the contribution is made. 

What's the Work Test?
To satisfy the Work Test you must be ‘gainfully employed’ for at least 40 hours within any 30 consecutive day period within the financial year before we're able to accept contributions into your super account. You will be required to advise us that you've satisfied the Work test for each financial year in which you will be making after-tax contributions. Call us or complete and return this form to let us know that you've fulfilled the Work Test. 

Age 75 and older

Once you reach age 75, you cannot make non-concessional (after-tax) personal contributions, even if you satisfy the Work Test.

There is one exception to this rule. If you're turning 75 during a financial year, you can make a non-concessional contribution on or before the day that is 28 days after the end of the month in which you turn 75. However, you still need to pass the Work Test and your Total Super Balance must not exceed $1.6 million.

When a member reaches age 75, only “mandated employer contributions” (which includes Superannuation Guarantee contributions and contributions made under a certified award or agreement), or downsizer contributions can be accepted.

What happens if you exceed the cap?

If you think you may go over your concessional contributions cap in the current financial year, it’s important to take action, or you risk paying extra tax.  Remember to check your contribution caps before making payments.

The first step is to stop or reduce any further concessional contributions (like salary sacrifice payments) if you can, or to delay until the next financial year any personal super contributions you intend to claim as a tax deduction.

It’s also a good idea to confirm with your employer when the electronic payment of contributions (e.g. salary sacrifice and SG amounts) will be made to your super fund, so you know whether or not it will hit your super account by 30 June.

Your employer is not required to make their SG contributions for the April to June quarter until 28 July 2021, which is in the next financial year.