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  • Contribution caps

    Some components of transfers from a foreign super fund count as a contribution. There are limits on the amount of contributions you can make to your Australian super fund in a financial year before additional tax applies. These limits depend on whether contributions are concessional or non-concessional.

    Further Information

    For more information about contribution caps, refer to Super contributions - too much super can mean extra tax.

    End of further information

    If you use this form to choose that your super fund pays tax on the earnings component of the transfer, that amount will not count towards the contribution caps.

    End of attention

    The following example shows how components of a foreign super fund transfer are counted against the contribution caps. All amounts are in Australian currency.

    Example - contributions caps

    David had $50,000 in a foreign super fund when he became an Australian resident.

    Four years later, the earnings on the fund were $8,000, giving a total balance of $58,000. David transfers $60,000 to his Australian super fund - that is, $2,000 more than the amount vested in him at the time of the transfer. This additional amount was allocated by David's former foreign employer as an additional discretionary payment (a 'golden handshake' in recognition of years of service).

    David completes this form, choosing that his Australian super fund pays tax on the $8,000 earnings component, and provides it to his Australian super fund.

    David's Australian super fund reports information about his foreign fund transfer to us. Based on the information they provide we treat each component of the transfer as follows:

    • $50,000 (the whole amount he held when he became a resident) counts towards David's non-concessional contributions cap.
    • $2,000 (his 'golden handshake') counts towards David's concessional contributions cap.
    • The remaining $8,000 (the earnings he chose his super fund to pay tax on) does not count towards either of David's contributions caps. If he had not made this choice they would have counted towards his non-concessional cap.
    Last modified: 19 Jul 2012QC 19311