Super contribution limits for 2013-14

Super contribution limits for 2013-14Australia has had super contribution limits since 1 July 2007. These limits or contribution caps fall into two categories: concessional and non-concessional.

  • Concessional contributions are before-tax contributions that form part of the fund’s assessable income. Examples include super guarantee (SG) contributions, salary sacrifice contributions, personal contributions which are claimed as a tax deduction, contributions made by another person (excluding spouse or child contributions), certain amounts allocated from a fund’s reserves and super guarantee shortfall payments.
  • Non-concessional contributions are after-tax contributions that do not form part of the fund’s assessable income. Examples include personal contributions which are not claimed as a tax deduction, spouse contributions, child contributions, certain overseas pension transfers, small business sale proceeds that are contributed to super and excess concessional contributions.

The caps for this financial year and 2014-15 are summarised below.

Superannuation Contribution Limits
Concessional
Contribution Limit2015-16
Under 50$30,000
50 to under 60$35,000
60 to under 65$35,000
65 to under 75 and meet work test$35,000
Non-Concessional
Contribution Limit2015-16
Under 65$180,000 or $540,000 using 3-year 'bring forward' rule
65 to 75 and meet work test$180,000

Some important tips

The test for determining whether your contribution cap is $25,000 or $35,000 is your age as at 30 June 2013. If you were aged 59 or over, you are entitled to the higher concessional limit of $35,000.

Another key change that applies from 1 July this year concerns contributions by those aged 75 and over.

Assuming you satisfy the work test, the general rule is that you can make contributions up until 28 days after the end of the month that you turn 75. For example, if you turn 75 on 17 May 2014, you can make contributions up until 28 June 2014. The contribution must be made and received by the fund by this date.

However from 1 July 2013, this restriction no longer applies to super guarantee and award-mandated contributions for those aged over 75. Other employer contributions – e.g. those via salary sacrifice arrangements and contributions by self-employed workers – cannot be accepted.

Contribution Type
Employee's Age
Under 6565 - 6970-7475 and over
Mandated SG or award contributionsAccepted without restrictionAccepted without restrictionAccepted without restrictionAccepted without restriction
Additional employer contributions, including salary sacrifice and self-employed contributionsAccepted without restrictionAccepted if member satisfies work testAccepted if member satisfies work testCannot be accepted
Voluntary personal (after-tax) contributionsAccepted without restrictionAccepted if member satisfies work testAccepted if member satisfies work testCannot be accepted
Spouse contributionsAccepted without restrictionAccepted if spouse satisfies work testCannot be acceptedCannot be accepted

For more information on this and other superannuation matters, please contact us.

  • Robert Holt

    Can you do a $450,000 contribution after age 65 if you meet the work test?

    • staff

      Hi Robert – No, the $450,000 ‘bring forward’ option is not available if you are over 65.

  • Adam Wang

    How can you pass the work test if a person’s birthday is 1 or 2 of July?

    • staff

      Hi Adam,

      To pass the work test, a person needs to work for at least 40 hours in a period of not more than 30 consecutive days in the financial year in which they intend to make a super contribution.

      To use your scenario, if Jenny turned 67 on 5 July, she would not have to work frantically during the first five days of the financial year to meet the work test. The relevant factor is the timing of her contribution, not the date of her birthday. So if Mary satisfies the work test in October and makes an eligible contribution in April the following year, she should be fine.