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Concessional contributions cap

Section: 6.12

Income year Superannuation contribution caps
Concessional 2020-21 $25,000
Concessional 2019-20 $25,000

A higher (un-indexed) concessional contributions cap previously applied to older members. For 2017-18 and later years, there is no longer a higher cap amount based on aged and all individuals are subject to the same general concessional contributions cap regardless of age.

Members are liable to pay excess contributions charge if the concessional contributions made by or for the member exceed their contributions cap for the year. The excess contributions are included in the member's income and taxed at marginal tax rates.

Unused concessional cap carry forward

From 1 July 2018, a member who has a total superannuation balance of less than $500,000 on 30 June of the previous financial year is entitled to contributed more than the general concessional contributions cap amount by making additional concessional contributions using any unused amounts from an earlier year.

This technical resource is intended for the use of financial advisers only. It is current as at the date of publication but may be subject to change. This publication has been prepared without taking into account a potential investor's objectives, financial situation, needs or objectives. Before making a recommendation based on this material, you should consider its appropriateness based on the client's objectives, financial situation and needs. Rainmaker Group is not a registered tax agent under the Tax Agent Services Act 2009. Your client should refer to a registered tax agent before relying on information published herein that may impact their tax obligations, liabilities or entitlements.

Last modified: Thursday, August 27, 2020