Skip to main content

Individuals

Search

Back to Top

Watch your contribution limits

Staff Writer - 4 min read

06 May 2022

lady and man looking at laptop and smiling

Contribution limits

Making the most of your super also includes remembering there are limits to how much you can contribute to your super each year. If you breach these ‘contribution caps’ you may need to pay extra tax. Your total super balance and age may also affect how much more you can contribute.

It’s important to keep a track of your contributions and be aware of the limits to avoid any unexpected tax implications.

Concessional contribution caps

Concessional contributions are contributions made from your before-tax income, including your compulsory super contributions (also known as super guarantee which is generally paid by your employer) and any pre-tax (known as salary sacrifice) contributions. It also includes any personal contributions using after-tax income (such as funds transferred from your bank account into super) that you’ve claimed a tax-deduction on.

From 1 July 2021, the concessional contribution cap increased to $27,500.

Non-concessional contribution caps

Non-concessional contributions are contributions made from your after-tax income and aren’t taxed once received by your super fund. However, if you exceed your non-concessional caps you may need to pay extra tax. Also note, investment earnings in the fund are taxed at 15 per cent.

From 1 July 2021, the non-concessional contribution cap increased to $110,000 per annum.