Contributions

Contributions

Contribution caps limit the amount that may be contributed as tax deductible (Concessional) or non-deductible (Non-Concessional) contributions.

Concessional Contribution Caps

Financial Year

Age Cap

12/13

To age 75 $25,000

13/14

58 or under @ 30/6/13

59 or over @ 30/6/13

$25,000

$35,000

14/15

48 or under @ 30/6/14

49 or over @ 30/6/14

$30,000

$35,000

15/16 48 or under @ 30/6/15

49 or over @ 30/6/15

$30,000

$35,000

16/17 48 or under @ 30/6/16

49 or over @ 30/6/16

$30,000

$35,000

17/18 to 20/21 To age 75

$25,000

21/22 To age 75

$27,500

 

Non-Concessional Contribution Caps

Year

Cap

12/13

$150,000 – 3 year limit of $450,000

13/14

$150,000 – 3 year limit of $450,000

14/15

$180,000 – 3 year limit of $540,000

16/17

$180,000 – 3 year limit of $540,000

17/18 to 20/21

$100,000 – 3 year limit of $0 to $300,000

2021/2022

$110,000 – 3 year limit of $0 to $330,000

 

Where an amount is contributed in excess of the standard non-concessional cap limit for that year it may trigger the 3 year bring forward rule. This allows the total amount which may be contributed within 3 years to be 3 times the limit in the year of the trigger subject to this being the first year of the trigger. There are also age and total super balance constraints. Up until 30 June 2021, the 3 year bring forward limit must commence no later than the year in which the member turns 65 though this can be after the member’s 65th birthday. From 1 July 2021, the 3 year bring forward limit must commence no later than the year in which the member turns 67. No contributions may be accepted after age 75.

From 1 July 2017, where the member’s total super balance is equal to, or over, the general cap ($1.6 million until 30 June 2021, $1.7 million from 1 July 2021) no non-concessional contributions may be made. The bring forward condition is also affected for lower balances as follows.

From 1 July 2017 to 30 June 2021

Total Super Balance @ Previous 30 June

Max NCC contribution

Less than $1.4m

$300,000

$1.4m to under $1.5m

$200,000

$1.5m to under $1.6m

$100,000

$1.6m or more

$0

From 1 July 2021

Total Super Balance @ Previous 30 June

Max NCC contribution

Less than $1.48m

$330,000

$1.48m to under $1.59m

$220,000

$1.59m to under $1.7m

$110,000

$1.7m or more

$0

 

Once the 3 year bring forward has been triggered the bring forward maximum limit is fixed though the actual amount that can be contributed may be reduced subject to the previous 30 June total super balance in each of the following 2 years.

The work test applies for individuals between 68 and 74 years of age.

Our SMSF Toolbox considers ways in which members, who are marginally over the pivot points mentioned above, may reduce their total super balance sufficiently to increase their non-concessional contribution eligibility by $110,000.

The double contribution strategy, whereby an additional contribution up to the level of the concessional cap may be made in June, allows the additional tax deduction to be taken in the year of contribution while the concessional contribution cap is debited in the following year. This strategy has limited appeal as the next year’s cap will have been used. A contribution within the cap will only be available in that year if it is made in June and allocated in July on an ongoing basis. This strategy is, therefore, generally only useful for members who can use the increased deduction in the current year but are not interested in making a contribution in the next year. This may occur for various reasons including;

  • impending retirement
  • impending downturn in business fortunes
  • an adhoc CGT event in retirement

Catch up contributions are available in certain circumstances post 1 July 2018.