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How much you can contribute, when you can contribute and the tax on contributions depends on:
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1. If your fund has your tax file number
2. How old you are and the type of contribution you would like to make, and
3. How old you are and the number of hours you work
Contributions and your tax file number (TFN)
Providing your TFN is very important, if you don’t provide it:
- Non-concessional contributions cannot be accepted, and
- Concessional contributions will be subject to additional tax of 31.5%
New contribution caps from 1 July 2007
From 1 July 2007 new limits on how much can be contributed to super apply. The limits are in addition to meeting work
test requirements.
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Contribution type
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Age requirement
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Annual dollar limit 2007-2008 + 2008-2009
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Concessional
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Less than 50 years old
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$50,000 (indexed)
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50 years old or more
(ends 30 June 2012 then see above)
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$100,000 (non-indexed)
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Non-concessional
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Less than 65 years old
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$150,000 (indexed) or
$450,000 (non-indexed)
over a 3-year period
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65 years old or more
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$150,000 (indexed)
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Each cap on contributions applies to all your superannuation accounts and neither is a cap for each fund.
You can choose to exclude contributions from the non-concessional contributions cap from the sale of small business
assets (which qualify for the small business capital gains tax exemptions), up to a life time limit of $1 million, as well as
contributions relating to settlements for injuries resulting in permanent disablement can be made.
Significant tax implications apply if the caps are exceeded and in certain circumstances, part of the contribution may
be returned.
Contributions and the work test
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Age
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Concessional contributions
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Non-concessional contributions
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Under 65
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Your employer can contribute to the Fund
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You can contribute to the Fund
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65 – 74*
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Your employer can contribute to the Fund if the contributions are mandated employer contributions**
OR
You must have worked at least 40 hours in any consecutive 30-day period during the same financial year in which the contributions are made
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You must have worked at least 40 hours in any consecutive 30-day period in the same financial year in which the contributions are made
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75 and over
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Your employer can contribute to the Fund only if the contributions are mandated employer contributions**
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Cannot be accepted by the Fund if you have reached the age of 75 or more
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* The contribution must be received before the 28th day after the month in which you reach age 75.
** Compulsory employer contributions including superannuation guarantee contributions (which cease at age 70) and
contributions made under an industrial award, determination or notional agreement preserving State Awards or
certified agreement.
Contributions over the cap amounts
Concessional contributions in excess of the cap in any financial year:
- can be accepted by the Fund
- will be liable for an additional 31.5% tax, and
- counted as non-concessional contributions and may be taxed again at 46.5% as excess non-concessional
contributions.
Non concessional contributions in excess of the cap in any financial year:
- made as one-off non-concessional contribution will be returned ie. the amount over and above the cap is returned
and those contributions under the cap will be retained.
- will be liable for tax at 46.5%.
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