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 & 18/19 To age 75

$25,000

 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 & 18/19

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

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. 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. If contributions are made in the year in which the member turns 65 but after their birthday the work test must have been satisfied before the contribution. This is able to be done either before or after the member’s 65th birthday. If contributions are made in the financial year in which the member turned 65, but after their 65th birthday, any contribution cannot be greater than the individual contribution cap even though the aggregate may be higher. No contributions may be accepted after age 75.

From 1 July 2017, where the member’s total super balance is equal to, or over, $1.6 million no non-concessional contributions may be made. The bring forward condition is also affected for balances from $1.4 million as follows.

Balance

Max NCC contribution

$1.3m to under $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

The work test applies for individuals between 65 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 $100,000.

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.