How do I check my contribution limits?

26/05/2016
Provided by EISS.

Annual caps apply to super contributions. If your contributions exceed these caps then significant additional tax may be payable.

Caps on 'non-concessional' contributions

 

Non-concessional contributions include those made to your super from your after-tax salary for which you do not claim a tax deduction, any excess concessional contributions and some other contributions and allocations from reserves.

The caps for the financial year 1 July 2015 to 30 June 2016 are:

  • $180,000, or
  • $540,000* in three years for people under age 65.
 

The Government has announced excess non-concessional contributions made from 1 July 2013 can be withdrawn, without penalty, along with any 'associated earnings'. Failure to elect to withdraw these excess contributions within the allowable timeframe will result in the excess being taxed at maximum marginal rate within the fund.

* To accommodate larger contributions, people under the age of 65 (at the start of the financial year) may generally bring forward two financial years' of non-concessional contributions - thus being able to make up to $540,000 of non-concessional contributions over 3 years. An eligible person who makes a non-concessional contribution in excess of $180,000 in a financial year automatically triggers this bring forward provision.

 

Caps on 'concessional' contributions

 

Concessional contributions include employer and salary sacrifice contributions and some other contributions and allocations from reserves.

The cap for the financial year 1 July 2015 to 30 June 2016 is:

  • $30,000, if aged under 49 on 30 June 2015, or
  • $35,000 if you are aged 49 and above on 30 June 2015.
 

From 1 July 2013, a new system of taxing excess concessional contributions applies. Concessional contributions in excess of these caps are treated as assessable income and effectively taxed at the member's marginal tax rate plus the Medicare Levy (and Medicare Surcharge where applicable). An interest charge will also apply. A non-refundable tax offset of 15% will be provided to take account of the contribution tax already paid. The excess concessional contributions will also count towards the non-concessional contribution cap.

Are you reaching your cap?

To find out if you're reaching your annual contribution cap, log in to your account using your member number and PIN. On the Contributions page, there is a link to Annual Contribution Caps. This will show you how you are going against the contribution limits for this financial year, including the assumed cost of any defined benefit that you may be entitled to.

 


This information has been prepared by EISS for general information only. The information does not take into account your personal objectives, financial situation or needs. Therefore, you should not act on this information if you have not considered the appropriateness of this information to your personal objectives, financial situation and needs. You should consult a licensed or appropriately authorised financial adviser before making any financial decision.
 

Electricity Industry Superannuation Board ABN 57 923 283 236 as Trustee of the Electricity Industry Superannuation Scheme.

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