Concessional contributions include:
• employer contributions (including contributions made under a salary sacrifice arrangement)
• personal contributions claimed as a tax deduction
If you have more than one fund, all concessional contributions made to all of your funds are added together and counted towards the concessional contributions cap.
From 1 July 2017, these contributions have been capped at $25,000 for each individual.
Personal Contributions claimed as a Tax Deduction
From 1 July 2018, individuals may elect to make concessional contributions up to the $25,000 cap to supplement their SGC and salary sacrifice arrangements.
You must inform your super fund of your intent by way of a written notice as well as your accountant. Your super fund must then give a written notice of acknowledgement
Unused Concessional Cap Carry Forward
From 1 July 2018 if you have a total superannuation balance of less than $500,000 on 30 June of the previous financial year, you may be entitled to contribute more than the general concessional contributions cap and make additional concessional contributions for any unused amounts.
The first year you will be entitled to carry forward unused amounts is the 2019–20 financial year. Unused amounts are available for a maximum of five years, and after this period will expire.
Give us a call if you would like to discuss making personal contributions up to your concessional cap.
Excess Concessional Contributions Tax
Excess concessional contributions from 2013-14 onwards are included as taxable income, taxed at the marginal tax rate plus an excess concessional contributions charge. The ATO will write to individuals who exceed their cap, informing them of the tax and charge and the options available to make that payment.