Provided by Mercer: 1/7/10
Annual caps apply to super contributions. If your contributions exceed these caps then significant additional tax may be payable.
Caps on ‘non-concessional' contributions
Non-concessional contributions include those made to your super from your after-tax salary and other less common non-concessional contributions.
The caps for the year to 30 June 2011 are:
- $150,000, or
- $450,000 over three years for people under age 65.
Contributions in excess of these caps will be taxed at 46.5%.
Caps on employer, salary sacrifice (and other 'concessional') contributions
Caps are applied to the total of employer, salary sacrifice and other less common concessional contributions.
The new caps for the year to 30 June 2011 are:
- $25,000* or
- $50,000 if you are aged 50 or over by 30 June 2011
The caps for the year to 30 June 2010 were:
- $25,000* or
- $50,000 if you were aged 50 or over by 30 June 2010.
*Indexed.
Additional tax of 31.5% will be payable on contributions in excess of these caps making a total tax rate of 46.5% including the usual 15% tax. In certain circumstances the tax rate may be as high as 93% because excess concessional contributions are also counted as non-concessional contributions.
For confirmation of your year to date contributions you should contact your super fund. Mercer Super Trust members can call the Mercer Helpline on 1800 682 525.
This information has been prepared by Mercer (Australia) Pty Ltd ABN 32 005 315 917 for general information only. The information does not take into account your personal objectives, financial situation or needs. Therefore, you should not act on this information if you have not considered the appropriateness of this information to your personal objectives, financial situation and needs. You should consult a licensed or appropriately authorised financial adviser before making any investment decision.
