Cap on concessional contributions

Cap on concessional contributions

The Government has set a cap called the concessional contributions cap on the amount of concessional contributions you can make in a financial year (i.e. 1 July to 30 June). For the 2018/19 financial year, you can contribute a maximum of $25,000. Additional tax applies to concessional contributions made above the concessional contributions cap. The cap is applied once per person, not per super fund. This means if you have more than one super fund, all concessional contributions made to all of your funds (including employer and salary sacrifice contributions to a defined benefit fund) are added together and count towards the same cap.

Excess concessional contributions are deemed to be non-concessional contributions and count towards the non-concessional caps.

From 1 July 2018, if you have a total super balance below $500,000, any unused portion of the concessional cap each year can be carried forward on a rolling basis up to a maximum of 5 years.

The concessional contributions cap is indexed to Average Weekly Ordinary Time Earnings, but only increases when this indexation results in an increase of $5,000 or more.