Limits or caps apply to contributions made to your superannuation in a financial year. If you contribute over your cap, you may pay extra tax.
The cap amount and how much extra tax you pay once you exceed it depend on whether the contributions are:
- concessional – made from before-tax income
- non-concessional – made from after-tax income.
If the super contribution you are making comes from a personal injury payment (also known as a structured settlement), you may be able to exclude all or part of it from your non-concessional contributions cap. This means you will not pay extra tax on the contribution.
You may be able to exclude your contribution from your non-concessional contributions cap if it is an eligible:
- workers' compensation settlement
- personal injury settlement
- court order made for compensation or damages for personal injury you suffered.
You must also meet all the requirements, which are to:
- make your contribution in the required time limit
- get certification from 2 legally qualified medical practitioners that it is unlikely you can ever work in a job for which you are reasonably qualified
- notify your super provider before or when you make the contribution using the Contributions for personal injury election form (NAT 71162).
See further information for People with disability.Find out about the limits (or caps) on contributions you can make to your super in a financial year.