Are you over 65?
If you are 64 years of age or less on 1` July of a financial year you may assume that your non-concessional contributions cap is $450,000 because of the bring-forward cap available to you.
If you are over 65 for the entire financial year you cannot bring forward two years of contributions.
Your non-concessional contributions cap is $150,000. If you contribute more, you will be assessed for excess contributions tax (ECT).
If you are over 65 and are making non-mandated (voluntary) contributions, then you will also need to satisfy the work test (40 hours in a month) – please ask us if you require further clarification.
Are you over 75?
The ATO has recently advised some over-75s are making contributions to superannuation when they are ineligible. After the age of 75, people can not make contributions to their super. There are very limited circumstances where an employer can continue to make contributions after a person turns 75.
Did you know deducted contributions count towards the concessional cap?
Deductions for super contributions in an income tax return are treated as concessional contributions and count towards the $50,000 concessional contributions cap.
From 1 July 2007, the concessional contributions cap is $50,000 per year. For individuals aged 50 and over, the transitional concessional contributions cap is $100,000 per year until 30 June 2012.
