Contribution caps

Your employer contributions and any salary sacrifice contributions made by your employee are considered to be concessional contributions - contributions made with pre-tax income.

Any voluntary after-tax contributions or Spouse contributions are considered to be non-concessional contributions.

Limits apply to the total amounts of concessional and non-concessional contributions your employees can make each year to any super fund. Any contributions received above the caps are taxed at a higher rate and will incur an interest charge.

 Contribution Limits for the 2017-18 Financial Year

 

Before Tax

(Concessional)

After Tax

(Non-Concessional)

Types of contributions included

Employer contributions

 
Salary sacrifice

 

Personal

Voluntary contributions

 
Spouse contributions

Contribution Cap

$25,000*

 

 

Under 65: $100,000**

 

Bring forward 3 years of contributions in a single year to a limit of $300,000 over 3 years

 *Indexed annually in line with Average Weekly Ordinary Time Earnings, in increments of $5,000 (rounded down)

** Individuals with a balance of $1.6 million or more are not eligible to make non-concessional contributions.

If you have salary sacrifice or payroll deduction arrangements in place with an employee and you are concerned they may be in danger of breaching one of the caps, we recommend discussing this with your employee.