Contribution caps
What is the policy intent?
The contribution caps aim to ensure that the substantial tax concessions for super are sustainable and fair.
Excess Contributions Tax (ECT) was introduced in 2007 to limit the amount of super contributions that are subject to concessional tax rates.
What is decided?
How much is the concessional contributions cap?
The concessional contributions cap for 2012-13 and 2013-14 is $25,000 for all your members, regardless of their age.
The transitional concessional contributions cap that allowed your members aged 50 and over to contribute up to $50,000 ended on 1 July 2012.
What isn't decided?
How long will the higher concessional contributions cap be deferred?
In the 2012-13 Federal Budget, the government announced it would defer the start date of the $50,000 concessional contribution cap for over-50's with a super balance of less than $500,000, for two years until July 2014. No further details have been announced.
Will the concessional contributions cap be indexed in 2014-15?
Indexation of the cap will be deferred until 2014-15, when the cap is expected to rise to $30,000.
The pause in indexation of the general concessional contributions cap will also result in a pause in the indexation of the concessional contributions cap for individuals aged 50 and over, and for the non-concessional contributions cap.
Last Modified: Friday, 5 April 2013