Increasing the concessional contributions cap

The government announced in the 2012-13 Budget that it will defer the start date of the measure that will increase the concessional contributions cap for individuals aged 50 and over, with low superannuation balances by two years, from 1 July 2012 to 1 July 2014. This measure was originally announced on 2 May 2010 as part of the Stronger, fairer, simpler tax reform.

Under the higher concessional contributions cap measure, individuals aged 50 and over with superannuation balances below $500,000 will be able to make up to $25,000 more in concessional contributions than allowed under the general concessional contributions cap.

The two-year deferral means that for 2012-13 and 2013-14, all individuals will be able to make concessional contributions of up to $25,000 per year as permitted under the general concessional contributions cap.

Media release

Refer to:

• Media Release no 024 issued by the Minister for Financial Services and Superannuation issued on 8 May 2012
• joint media release from the Prime Minister and Treasurer, Stronger, fairer, simpler: a tax plan for our future issued 2 May 2010.

More information

For more information refer to:

• 2012-13 Budget paper No 2 (PDF 1.4MB) page 40
• Consultation paper - Concessional Superannuation Contributions Caps for Individuals Aged 50 and Over issued 28 February 2011.