Superannuation contribution limits for the 2017-18 and following financial years received a shake-up arising from a range of measures implemented from the Federal budgets of 2016-17 and 2017-18.
Overall contribution limits for both concessional and non-concessional contributions have been capped at lower levels from 1 July 2017.
Concessional Contribution Caps
|Year||General||Under 49 at end of previous financial year||49 and over at end of previous financial year|
Non-concessional Contribution Caps
|Year||Annual Limit||Bring Forward||Transfer Balance Cap|
CGT Non-concessional Contributions Cap
A small business retirement CGT-exempt amount contributed to a super fund can by election can be excluded from the non-concessional contributions cap and counted towards the superannuation CGT cap.
Concessional contributions from 1 July 2017:
- The higher contribution limits available to older Australians in previous years are replaced by the general limit of $25,000 for all eligible contributors
- Aged 65 to 74 can only contribute subject to a work test. This requires the individual to be “gainfully employed” for at least 40 hours in a period of not more than 30 consecutive days in the financial year.
- From 28 days after the end of the month of turning 75 years, personal concessional contributions can no longer be made, only mandated employer contributions and super guarantee are required.
From 1 July 2018
- From the 2018-19 year, unused concessional contribution limit can be carried forward for a maximum of 5 years, provided the total superannuation balance is under $500,000. Therefore the first year these unused amounts can be used will be in the 2019-20 year.
Non-concessional contribution limits from 1 July 2017:
- Annual non-concessional contribution limit reduces from $180,000 to $100,000
- Unused limits under the ‘bring forward’ rule: After 30 June 2017 the limit is reduced from $540,000 to $300,000 available over 3 years, and is only available for under 65 year olds. Unused bring forward caps at 30 June 2017 are subject to transitional rules:
- bring forward triggered in 2015/16: the transitional cap is $460,000;
- bring forward triggered in 2016/17: the transitional cap is $380,000
- Non-concessional contributions can only be made if the total superannuation balance is under $1.6 million.
- Aged 65 to 74 can only contribute subject to a work test, as well as the $1.6 million total super balance limit.
- From 28 days after the end of the month of turning 75 years, non concessional contributions can no longer be made and the bring forward rule is not applicable
The transfer cap is a ceiling total superannuation balance which is applied to limit some superannuation concessions. The cap is set at $1.6 million as at 1 July 2017 and will be indexed annually in increments of $100,000.
The cap is the maximum amount which can be transferred into tax-free pension status.
Super balances accumulated in excess of the cap can remain in the accumulation fund with earnings generally taxed at the normal fund rate of 15%.
This page was last modified 2018-12-13