How much can I contribute to Super?

Super contributions are mainly classified in two ways – concessional contribution (CC) and non-concessional contribution (NCC).

Concessional contribution (CC):

These are contributions that are made into superannuation before tax. Typically, employer super guarantee payments, salary sacrifice, self-employed personal contribution etc are classified as Concessional Contribution. Because this is a before tax contribution there is an annual cap on how much you can contribute which is dependent on the person’s age and the year in which the contribution is made.

Financial Year Under 50 Over 50*
2017 / 2018 $25,000 $25,000
2016 / 2017 $30,000 $35,000
2015 / 2016 $30,000 $35,000

*If you turn 50 during a financial year, then the cap that applies is the over 50 cap. Note if you are over age 65, then you will need to meet a work test in order to contribute to super. From age 75, you will no longer be able to increase what is contributed to your super (such as salary sacrifice or personal contributions). Only the mandatory contributions from your employer will be allowed to be contributed to your fund.

Non Concessional Contribution (NCC):

These are contributions that are made into superannuation after tax IE you have already paid tax on this money and are now wanting to add this towards your superannuation savings. Because any income or gains derived from your superannuation is taxed at a lower rate, generally 15% on Income and 10% on gains, hence there exists a cap of how much a person can contribute as NCC to ensure individuals are not taking an unfair tax advantage.

Income Year Cap Bring forward cap
2017/2018** $100,000 $300,000
2016/2017 $180,000 $540,000
2015/2016 $180,000 $540,000

**If your superannuation balance across all of the providers you use is equal to or more than $1.6 million, you won't be able to make non-concessional contributions from 1 July 2017.

Speak to one of our degree qualified advisers about how this relates to you.

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GENERAL DISCLAIMER:

The content of this presentation is intended to be general information only and has been prepared without taking into account any person’s objectives, financial situation or needs. Each person should consider its appropriateness having regard to these matters or obtain relevant professional financial advice before making any financial decisions.  Examples are illustrative only. Each person should obtain any relevant professional financial, taxation and social security advice before making any financial decisions.