Contribution caps – have you reached yours?

 

If you or your employer make contributions over the Federal Government’s contribution caps, the amount of contributions over the caps will be taxed at a higher rate.

And once your contributions have gone over the caps you cannot ask your superannuation fund for refund of contributions.

Check your contributions – are they over the contribution caps?

So if you do not want to incur the extra tax it is important that you monitor the amount of contributions going into your various super fund accounts.

If you are a current member you can check your First State Super transactions online.

If you have your member number you can register to use the online services by entering your details in the First State Super member account login area, click here to access.

Alternatively, you can call Customer Service to register on 1300 650 873.

Contribution caps for the financial year 2011/2012:

 

Type of contribution 

Age requirement
Cap amounts
Tax on contributions over the caps
Concessional
(generally employer contributions

Less than 50 years old

 
$25,000
 
 
 
 
 
 
 
31.5% (plus 15% which is already paid by the fund)

AND

Amounts over the concessional cap count towards the non-concessional contribution cap
 

50 years old or more 
$50,000
As above 
Non concessional (generally after tax member contributions) 

65 years old or more (to contribute you must satisfy certain criteria)
$150,000

 

 
46.5% 
 
Less than 65 years old

 
$450,000 over a 3-year period
46.5% 

 

The caps are applied to the ‘total’ amount of contributions made in a financial year across all superannuation funds; the cap amounts are not limited to a single superannuation fund.

For more information click here