In what ways can a person contribute to their super fund?

In what ways can a person contribute to their super fund?

Besides your employer contributions, you can also contribute extra to your super, however, there are limits to how much you can contribute and these are referred to as Contribution Caps. There are different limits to the caps which depend on the type of contributions made into your super fund, these are explained in-depth below.

Concessional contributions are before tax contributions.  They include employer contributions, salary-sacrificed contributions and personal contributions for which you can claim a tax deduction. The maximum concessional contributions that can be made are $25,000.

Note

In the 2016-17 Federal budget the Government lowered the amount of concessional contributions that can be made to a fund to $25,000 for all individuals regardless of age, starting from 1 July 2017. The contribution limit prior to this was $30,000 for anyone under the age of 50 and $35,000 for a person age 50 or older.

Non-concessional contributions are after tax contributions.  These contributions are contributions you make after tax has been taken out of them and for which you are not allowed to claim an income tax deduction.  The maximum amount of non-concessional contributions that can be made is $100,000 per year or $300,000 over a three-year period which commences in the first year in which the non-concessional contributions exceed $100,000.

From 1 July 2017, the non-concessional contributions cap is nil for individuals with total superannuation balances of $1.6 million or more at the end of the previous income year.

Note

There are reduced bring forward non-concessional caps for those individuals who have a total superannuation balance greater than $1.4 million. We encourage seeking Specialist SMSF advice in this area.

The following Australian Taxation Office (ATO) link may also assist you:

Contribution caps