Superannuation Contributions Cap

Posted on Sep 3, 2012 | 0 comments

Reminder: $25,000 Concessional Contributions Cap

From 1 July 2012 the concessional contributions cap is $25,000 for everyone, regardless of their age.
The change is because the:
•    transitional concessional contributions cap for individuals aged 50 years and over expired on 1 July 2012
•    proposed new policy that will allow people aged 50 and over with low account balances to make
concessional contributions up to $50,000 per year, without incurring excess contributions tax, has been
deferred for two years until 1 July 2014.

If you don’t want to exceed the caps, you should:
•    review your salary sacrifice to super arrangements
•    check the amount of your compulsory employer contributions
•    confirm if other super contributions are paid by your employer from pre-tax income, such as
administration  fees and insurance premiums
•    be aware that contributions to super claimed as an income tax deduction, such as contributions made if
you are self-employed, are also counted, and
•    for members of a defined benefit fund, include your notional taxed contribution amount

For personalised Superannuation advice, give the JWA Team a call on (07) 5585 8555 or send an email to jo-ellen@jwa.com.au

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