From 1 July 2017, the amount of concessional (before-tax) and non-concessional (after-tax) contributions you can make to your super each year without paying extra tax will be reduced.
For concessional contributions, the cap will reduce to $25,000 for all ages, down from $30,000 for those aged under 50 years of age and $35,000 for those aged 50 or older.
Before-tax contributions include compulsory employer contributions (super guarantee) and salary sacrifice contributions.
For non-concessional contributions, the cap will reduce to $100,000, down from $180,000.
After-tax contributions include personal contributions which you don’t claim an income tax deduction on and spouse contributions.
Penalties apply if you go over either the concessional or non-concessional contribution caps. For detailed information, you can visit the ATO website.
Contact us if you need further information about these changes. Simply send us an email or phone us on 1800 005 166.