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Super Contribution Caps – Use them to your advantage while you can!


There are limits to what you can contribute to superannuation each financial year, but what are they? How can you use them to your maximum benefit?

For non concessional contributions, which are not tax deductible, you can contribute up to the following limits:

— Annual cap of $150,000 per year, or

–$450,000 per member over a three year period.


For concessional contributions which are tax deductible, the limits are:

— Concessional $25,000 each year for under 50’s.

— Concessional transitional arrangements $50,000 (aged 50 or over at any time in financial years 2010/11 and 2011/12.


Excess contributions are taxed personally at the following rates:

— Concessional (Plus counts to non-concessional cap) 31.5%

— Non-concessional 46.5%


So what are some of the key points for you to consider when looking at your superannuation contributions:

-If you are 50 or over, consider maximising your tax deductible contributions ($50,000pa) while you can before 30 June 2012.

-Remember that the 9% Super Guarantee contributions are included in the cap.

-Remember that any other employer contributions are also included in the cap.

-Non tax deductible contributions may prove  useful  as you do not pay the 15% contributions tax on these contributions.

Please contact your adviser to ensure that you are contributing the optimum amount (and correct type of contribution) to your super.

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