• Contribution caps

    The contribution caps limit the amount that can be contributed for a member each financial year. The caps are indexed annually. A member whose total contributions in a year exceed the contribution caps may be liable for additional tax on the excess contributions.

     

    Duration 2:13. A transcript of Super contributions cap is also available.

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    Fund-capped contributions limit

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Your SMSF can't accept single contributions that exceed a member's fund-capped contribution limit. This limit depends on the member's age at the start of the financial year:

    • Member aged 65 or over but under 75 on 1 July
      The fund-capped contribution limit is the non-concessional contributions cap for that financial year.
    • Member aged 64 or under on 1 July
      The fund-capped contribution limit is three times the non-concessional contributions cap for that financial year.

    Fund-capped contributions do not include:

    • personal contributions that your member advises they intend to claim as an income tax deduction
    • contributions from a structured settlement or personal injury payment (the member or a legal personal representative should have notified you that they would make this contribution)
    • super co-contributions.

    Your fund must return the excess amount within 30 days.

    Concessional contributions

    Concessional contributions are contributions made into your SMSF that are included in the SMSF's assessable income. These contributions are taxed in your SMSF at a ‘concessional’ rate of 15%, which is often referred to as ‘contributions tax’.

    The most common types of concessional contributions are employer contributions, such as super guarantee and salary sacrifice contributions. Concessional contributions also include personal contributions made by the member for which the member claims an income tax deduction.

    Concessional contributions are subject to a yearly cap.

    From 1 July 2017, the general concessional contributions cap is $25,000 for all individuals regardless of age.

    For the 2014-15, 2015-16 and 2016-17 financial years, the concessional contributions cap is $30,000 per financial year and will be temporarily increased to $35,000 for members aged 49 or over.

    For the 2013–14 financial year onwards, excess concessional contributions are no longer subject to excess contributions tax. If a member's contributions exceed the cap, the amount will be included in the member's assessable income and taxed at their marginal tax rate.

    Non-concessional contributions

    Generally, non-concessional contributions are contributions made into your SMSF that are not included in the SMSF's assessable income. The most common type is personal contributions made by the member for which no income tax deduction is claimed.

    Non-concessional contributions also include excess concessional contributions for the financial year.

    They do not include:

    • super co-contributions
    • structured settlements and orders for personal injury
    • capital gains tax (CGT) related payments that the member has validly elected to exclude from their non-concessional contributions.

    For the 2014-15, 2015-16 and 2016-17 financial years non-concessional contributions are subject to a yearly cap of $180,000 for members 65 or over but under 75 or $540,000 over a three-year period for members under 65.

    From 1 July 2017, the government will lower the annual non-concessional contributions cap to $100,000. They will also introduce a new constraint so individuals with a balance of $1.6 million or more will no longer be eligible to make non-concessional contributions.

    If you are younger than 65 years old, you may be able to make non-concessional contributions of up to three times the annual non-concessional contributions cap in a single year.

    If eligible, when you make contributions greater than the annual cap, you automatically gain access to future year caps. This is known as the ‘bring forward’ option.

    From 1 July 2017, the bring forward amount and period also depends on your total super balance on 30 June of the year before the financial year in which the contributions that trigger the bring forward were made.

    For 2017–18 onwards, to access the non-concessional bring forward arrangement, you must:

    • be younger than 65 years old for one day during the triggering year (the first year)
    • contribute more than the annual cap
    • have a total super balance less than $1.5 million on 30 June of the previous year.

    For 2017–18 onwards, the remaining cap amount for year 2 or 3 of a bring forward arrangement is reduced to zero if the total super balance is greater than $1.6 million on 30 June of the previous financial year.

    Total Superannuation Balance

    Contribution and bring forward available

    Less than $1.4 million

    Access to $300,000 cap (over 3 years)

    Greater than or = to $1.4m and less than $1.5 million

    Access to $200,000 cap (over 2 years)

    Greater than or = to $1.5m and less than $1.6 million

    Access to $100,00 cap (over 1 year)

    Greater than or = to $1.6 million

    Nil

    Transitional arrangements apply to individuals who brought forward their non-concessional contributions cap in the 2015–16 or 2016–17 financial years.

    See also:

    Last modified: 16 Dec 2016QC 42460