Superannuation Contributions – Your super is your future. The superannuation choices you make today will help shape your lifestyle in retirement. There are limits on how much you can contribute to your super fund each financial year without having to pay extra tax. These limits are called ‘contribution caps’.

How much you can contribute to your super fund and whether your fund is allowed to accept your contribution may also depend on your age and total super balance.

Contribution caps apply to all super funds. If you have more than one super fund, all your contributions are added up and count towards your caps. If you exceed these caps, you may need to pay extra tax. You can avoid this by becoming familiar with your own contribution caps.

There are two types of superannuation contributions you (or others) can make into your super fund:

• Concessional – These contributions come from income that has not yet been taxed. They are also called ‘before tax’ contributions. Once the concessional contributions are in your super fund, they are taxed at a rate of 15%. You may need to pay extra tax if you exceed the concessional contribution cap.
• Non-concessional – These contributions come from income that has already been taxed. They are also called ‘after tax’ contributions. These contributions are not taxed once received by your super fund. However, you may pay tax on them if you exceed your non-concessional contribution cap.

Any questions about superannuation? Please call us to day for an obligation free consultation, or visit ATO Website.

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