Superannuation Changes and Updates – Reduced concessional cap

Reduced concessional cap

What is the new concessional contributions cap and when does it take effect?

From 1 July 2017, the new annual concessional contributions cap is $25,000 for all individuals regardless of age. This is the total super contribution you can make in a year

From 1 July 2019, you may increase your concessional contribution cap by carrying forward your unused concessional cap space amounts if you have a total superannuation balance of less than $500,000.

What is included in the concessional contributions cap?

Concessional contributions are contributions you make to your super fund from before tax income.

From 1 July 2017, concessional contributions include:

• employer contributions, such as
  • compulsory employer contributions
  • any additional pre-tax contributions your employer makes
  • salary sacrifice payments made to your super fund
  • other amounts paid by your employer from your pre-tax income to your super fund, such as administration fees and insurance premiums

• contributions you are allowed to claim as an income tax deduction

I only earn salary and wages, am I able to claim a deduction for personal (after tax) super contributions I make?

Yes. If you make personal super contributions after 1 July 2017 you will not be required to meet the 10% maximum earnings test to be eligible to claim a deduction, however you must meet all other eligibility criteria.

Do I still need to complete a Notice of intent to claim a deduction for personal superannuation contributions?

Yes, you need to complete a Notice of intent and send it to your super fund before you lodge your tax return. Once you receive an acknowledgment from your fund, you can then claim the deduction.