• Transitional concessional contributions cap

    2007-08 to 2011-12 financial years

    For older working Australians who are financially able, and willing, to contribute more to their super, transitional concessional contributions caps were introduced.

    They are set out in section 292-20External Link of the IT(TP)A and apply to people who are 50 years old or older on the last day of the financial year. These cap amounts are higher than the normal concessional contributions cap, as shown in the table above.

    Attention

    The transitional concessional contributions cap for 2007-08 to 2011-12 financial years is not indexed.

    End of attention
    Example: impact of age

    Jeremy turned 50 years old on 5 October 2010.

    As he will be 50 or more on or before the last day of the 2010-11 financial year (ending 30 June 2011), his concessional contributions cap for that year (and for the 2011-12 financial year) is $50,000.

    His cap reverts to the standard concessional contributions cap in the 2012-13 financial year (ending 30 June 2013). His annual concessional contributions caps for the 2007-08 to 2012-13 financial years are set out in the table below.

    End of example

    Remember that the normal concessional contributions cap was reduced from $50,000 to $25,000 for the 2009-10 financial year and the transitional cap expired on 1 July 2012.

    Table 2: Annual concessional contributions cap

    Financial year (age)

    2007-08 (47)

    2008-09 (48)

    2009-10 (49)

    2010-11 (50)

    2011-12 (51)

    2012-13 (52)

    Annual concessional contributions cap

    $50,000

    $50,000

    $25,000

    $50,000

    $50,000

    $25,000

    Refund of excess concessional contributions

    In the 2011-12 Federal Budget the Government announced that, from 1 July 2011, eligible individuals will have the option to have excess concessional contributions taken out of their super fund and assessed as income at their marginal rate of tax, rather than incurring excess concessional contributions tax.

    This will apply if an individual has excess concessional contributions of up to $10,000 (not indexed) in a financial year and is only available for breaches for 2011-12 or later financial years, and only for the first year, starting from 2011-12, in which a breach occurs.

    For more information on refund of excess concessional contributions, see Refund of Excess Concessional Contributions.

      Last modified: 22 Nov 2013QC 34181