Super Contributions

There are two types of contributions that members can make to their super fund: concessional and non-concessional.

Concessional Contributions

Concessional contributions are sometimes called taxable contributions, because they are taxable as they enter the fund at a concessional rate of 15%. Concessional contributions include super guarantee amounts, and deductible contributions. Concessional contributions are subject to a contributions cap, which was $25,000 for 2010. It is to be indexed in accordance with AWOTE in increments of $5,000. Until 30 June 2012, there is a transitional concessional contributions cap available for people aged 50 or over on the last day of a financial year

Non-Concessional Contributions

Non concessional contributions are super contributions that are made after tax. They do not qualify for a tax deduction, and they do not incur any contributions tax when they enter the fund. The non-concessional contributions cap is $150,000 per year. For those who are aged under 65 years of age at any time in the financial year, they may elect for the “bring forward” option. This allows those eligible to bring forward up to three years of non-concessional contributions in the given year. This allows members to put up to $450,000 after tax into their super fund.

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