Contributing to superannuation

There are limits on the amount you can contribute to super each financial year that are concessionally taxed.

There are two types of contributions and the limits are different for both. These are referred to as concessional and non-concessional contributions.

Any super contribution over the cap amount is subject to additional tax.  If you are looking at making additional contributions this year, it is important to be aware of these limits.

Concessional contributions include:

  • the 9% compulsory super guarantee made by employers;
  • additional voluntary super contributions made by employers;
  • amounts that are salary sacrificed;
  • personal contributions that are allowed as a personal super tax deduction.

The 2011 – 2012 concessional contributions cap for those under 50 years of age is $25,000 and $50,000 for people 50 years of age or over.

Non-concessional contributions include:

  • non-deductible personal contributions made by individuals from after-tax income;
  • contributions made by their partners;
  • any contributions that exceed the concessional contribution cap.

The 2011 – 2012 non-concessional contributions cap of $150,000 applies to all.