Australia 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 are summarised below.
| Superannuation Contribution Limits 2024-25 | |
|---|---|
| Concessional | |
| Under 75 | $30,000 |
| Non-Concessional | |
| Under 75 and total super balance < $1.66 million | $120,000 or $360,000 using 'bring forward' rules |
| Under 75 and total super balance > $1.66 million but < $1.78 million | $120,000 or $240,000 using 'bring forward' rule |
| Under 75 and total super balance > $1.78 million but < $1.9 million | $120,000 |
| Under 75 and total super balance > $1.9 million | Nil |
Some important tips
The test for determining whether your contribution cap is $25,000 or $35,000 is your age as at 30 June 2016. 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 2017, you can make contributions up until 28 June 2017. The contribution must be made and received by the fund by this date.
However this restriction does not apply 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 65 | 65 - 69 | 70-74 | 75 and over | |
| Mandated SG or award contributions | Accepted without restriction | Accepted without restriction | Accepted without restriction | Accepted without restriction |
| Additional employer contributions, including salary sacrifice and self-employed contributions | Accepted without restriction | Accepted if member satisfies work test | Accepted if member satisfies work test | Cannot be accepted |
| Voluntary personal (after-tax) contributions | Accepted without restriction | Accepted if member satisfies work test | Accepted if member satisfies work test | Cannot be accepted |
| Spouse contributions | Accepted without restriction | Accepted if spouse satisfies work test | Cannot be accepted | Cannot be accepted |
For more information on this and other superannuation matters, please contact us.