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  • Fund-capped contributions

    The fund-capped contribution limit does not apply for any contributions made from 1 July 2017.

    For fund-capped contributions made prior to 1 July 2017, there was a limit on the amount you could accept in any single contribution. A fund-capped contribution was generally the largest contribution amount your fund could accept.

    The fund-capped contribution limit applied per contribution, not to the total member contributions to your fund.

    If you received a contribution for your member which was more than their fund-capped contribution limit, you must return the excess amount (above the limit) to them within 30 days.

    The fund-capped contribution limit, by age of member

    Member's age at 1 July

    Fund-capped contribution limit

    Under 65 years old

    Three times the non-concessional contributions cap for that financial year.

    Over 65 years old but less than 75 years old

    The non-concessional contributions cap for that financial year.

    For example, the fund-capped contribution limits for the 2016–17 financial year were:

    • $180,000 if the member was 65 years old or over on 1 July 2016
    • $540,000 if the member was under 65 years old on 1 July 2016.

    When you worked out the fund-capped contribution amount, you should not have included any amount:

    • for which you gave an acknowledgment notice to your member after they had validly notified you that they intended to claim a personal super contribution deduction for the amount
    • that your member gave you a valid election to exclude an amount from their non-concessional contributions because:
      • they received it as a result of personal injury
      • it qualified for the small business capital gains tax (CGT) concession
       
    • that related to a directed termination payment
    • where the payment was made by us because it was government contributions such as co-contributions, low income super contributions or low income superannuation tax offset.

    Example 1

    In the 2016–17 financial year Rosa was 72 years old and made a personal super contribution of $200,000. Rosa's fund checked her member details and determined that her fund-capped limit was $180,000.

    Her fund returned the excess part of her contribution ($20,000) to Rosa within 30 days.

    After the end of the financial year, Rosa's fund reported personal contributions of $180,000 for her.

    End of example

     

    Example 2

    In the 2016–17 financial year Henry was 55 years old and made a contribution of $575,000. At the same time, he gave a valid notice that he intended to claim $35,000 as a personal super contribution deduction.

    Henry's fund checked his member details and determined that his fund's capped limit was $540,000. After deducting the amount covered by the notice, the fund capped contribution amount was $540,000. Therefore the fund did not have to return any amount to Henry.

    Henry's fund reported personal contributions of $575,000 for him for the financial year.

    Henry's fund also reported an assessable personal contribution of $35,000 for the financial year at Label R2 of its SMSF annual return.

    End of example

     

    Example 3

    Nerissa was 60 years old and made two contributions of $400,000 in the 2015–16 financial year, totalling $800,000 in personal contributions.

    Individually, neither one of Nerissa's contributions was greater than her fund-capped contribution amount for the financial year. Therefore, her fund could not return any part of the contributions to her.

    The fund must report $800,000 as Nerissa's personal contributions for the year.

    End of example

    See also:

    • ATO ID 2007/225 Superannuation contributions: acceptance of fund capped contributions by a self-managed superannuation fund
    • ATO ID 2008/90 Superannuation contributions: return of fund capped contributions by self-managed superannuation fund
    • ATO ID 2012/79 Superannuation contributions: the operation of subregulation 7.04(3) of the Superannuation Industry (Supervision) Regulations 1994 in the context of in-specie contributions of listed shares
      Last modified: 22 Mar 2019QC 21807