Contributions Limits

How much you can pay into super will reduce from 1 July 2017

The total annual amount of super contributions you can pay into super will reduce. Below we set out the current and new lower annual caps on contributions:

Type of contribution

Current

annual caps

New

annual caps

(from 1 July 2017)

Concessional (before tax)
(including employer contributions (e.g. Superannuation Guarantee),
any amount you salary sacrifice into super and personal contributions that you claim as a tax deduction)

$35,000
(over age 50)

$30,000
(under age 50)

$25,000

(all ages)

Non-concessional (after tax)
(personal contributions for which you do not claim an income tax deduction, and spouse contributions)

$180,000*

$100,000*

*If you are under 65 years of age, you may be able to make non-concessional contributions of up to three times the annual cap in a single year. Further to the reduction in non-concessional caps, from 1 July 2017 the maximum bring-forward amount will reduce from $540,000 to $300,000.

After 30 June 2017, if your total super balance is over $1.6 million, no further non-concessional contributions will be permitted in any year.
Any amounts contributed in excess of the caps will be taxed at your marginal tax rate or higher. The contribution caps apply in total across all your funds to which contributions are being made to.

If you have any questions please contact legalsuper on 1800 060 312.