Whether you are employed or self employed knowing the maximum amount you can contribute to your superannuation funds is important and staying within the caps is vital as exceeding the caps may result in you paying as much as 93% of your superannuation contributions in tax.
The superannuation contribution caps that apply to you for the 2012/13 financial year are as follows:
- Concessional (before-tax) contributions - $25,000. Concessional contributions include compulsory employer contributions, salary sacrifice payments, contributions that are allowed as an income tax deduction, etc.
- Non-concessional (after-tax) contributions - $150,000. If you are under the age of 65, you can bring forward up to the next two years' non-concessional contributions. This means you can contribute up to $450,000 as non-concessional contribution over three years or you are allowed to contribute up to $450,000 non-concessional contributions in one financial year but then you would not be allowed to make any further non-concessional contributions in the next two financial years.
Suresh Rajani is
the Business Leader at TAX FIRST (NSW) & TAX FIRST (SA) - accounting and business advisory firms located in Sydney and Adelaide.
