Super contributions – too much super can mean extra tax
Category : Practice Updates
There are caps on the amount you can contribute to your superannuation each financial year that are taxed at lower rates. If you contribute more than these caps you may have to pay extra tax. The cap amount and how much extra tax you have to pay depends on your age and whether the contributions are:
- concessional (before-tax) contributions
- non-concessional (after-tax) contributions
Contribution Caps
Concessional
The maximum amount of concessional contributions that can be contributed in respect of a member without a tax penalty being imposed:
| Income Year | Cap for those aged 49 years or
over on 30 June 2014 |
Cap for those aged under 49 years
on 30 June 2014 |
| 2014/2015 | $35,000* | $30,000 |
*Subject to work test if aged over 65 years.
Non-Concessional
The maximum amount of non-concessional contributions that can be made in respect of a fund member is:
| Age | 2014/2015 |
| Under 65 years of age | $180,000* |
| Between 65 and 74 years | $180,000 |
| Over 74 years of age | $0 |
*People under 65 years of age may be able to make non-concessional contributions of up to three times their non-concessional contributions cap over a three-year period (i.e. $540,000). This is known as the “bring-forward” option.
The penalty for exceeding the above caps is 46.5% of any excess contributions.