The contribution caps for concessional (before tax) and non-concessional (after tax) contributions to super have increased for the 2014/15 year, as a result of indexation.
Concessional contributions include your employer's compulsory Superannuation Guarantee contributions, your salary-sacrificed contributions, or any contributions claimed as a tax deduction.
Under the superannuation rules, the concessional cap is indexed in line with movements in average wages, and increases in $5,000 increments.
If you're aged 48 years or younger on the 30 June 2014, you can contribute up to $30,000 a year in concessional contributions for the 2014/2015 year (previous years the cap is $25,000). Refer to the table below:
Under 50 - $30,000 50 years to 59 years - $35,000 60 years and over - $35,000
Under 50 - $25,000 50 years to 59 years - $25,000 60 years and over - $35,000
If you're aged 49 years or older on the 30 June 2014, then you can contribute up to $35,000 a year in concessional contributions for the 2014/2015 year. The special cap of $35,000 was also available for the 2013/2014 financial year, but only for Australians who were aged 59 years or older on 30 June 2013.
Non-concessional contributions are voluntary contributions not claimed as an income tax deduction by you, or your employer. The non-concessional cap is indexed in $30,000 increments in line with any $5,000 increase in the concessional contributions cap.
The non-concessional (after tax) contributions cap has increased to $180,000 for the 2014/15 year, compared with $150,000 for the 2013/14 year.
If you take advantage of the bring-forward rules during the 2014/15 year, then you can make up to $540,000 in non-concessional contributions in one year, representing your non-concessional cap for the current year and following two years.
As always, if you have any concerns or questions about your position regarding Super contributions, please don't hesitate to call our office on 07 5482 2855 and arrange to speak with one of our Superannuation professionals.