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WARNING! THIS PAGE MAY NOT BE UP TO DATE
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As we no longer have the resources to keep it up to date, this website ceased to be a subscription website from March 2022
(last annual subscription accepted in December 2020)
You should not rely on it for the most up to date information. Having said that, we do update some of it from time to time.
You may still find some of it useful.
You may wish to use the atotaxrates.info website instead, which may be more up to date.
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Superannuation Non-Concessional/Undeducted/Post-Tax Contributions
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* Please click on maximise [+], not the titles, to display the contents of any hidden containers *
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NB! All earnings and contributions into a superfund since 1 July 1999 are preserved until a condition of release allows them to be withdrawn.
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SIS LEGISLATION
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Contributing proceeds of sale of main residence to Super (downsizing misnomer)
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Some personal contributions will be deemed Non-Concessional
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A taxpayer cannot use a personal super deduction to create or increase a loss. Therefore the taxpayer cannot claim more than the amount of their taxable income in that year. Only the amount of the personal contributions that you are allowed as a deduction in your income tax return will count towards your concessional contributions. The remainder of your personal contributions will count towards your non-concessional contributions. If your client has already maximised their non concessional contributions for the year, the remainder amount (referred to above) will create an excess non-concessional contribution.
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The Work Test - Gainfully Employed
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For an individual to be gainfully employed on at least a part-time basis a person must be gainfully employed (i.e. self-employed or employed for gain or reward in any business, trade, profession, vocation, calling, occupation or employment) for at least 40 hours in a period of not more than 30 consecutive days during a financial year.
Up to 30 June 2022, as the trustee of a complying fund could not accept contributions from a person over age 65 unless they satisfied this work test, it follows that the work test must be satisfied not only during the financial year, but also at a time prior to the contribution being made, otherwise the contribution cannot be accepted by the trustees.
From 1 July 2022 the work test no longer applies to non-concessional contributions up to age 75.
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Contributions that are exempt from the caps
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There are four ongoing exemptions to the non-concessional cap.
1. The proceeds from the disposal of eligible small business assets are exempt up to a lifetime limit known as the CGT Cap Amount.
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CGT Cap Amount
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| 2023/2024 |
$1,705,000 |
| 2022/2023 |
$1,650,000 |
| 2021/2022 |
$1,615,000 |
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2020/2021
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$1,565,000
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2019/2020
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$1,515,000
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2018/2019
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$1,480,000
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2017/2018
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$1,445,000
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2016/2017
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$1,415,000
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2015/2016
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$1,395,000
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2014/2015
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$1,355,000
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2013/2014
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$1,315,000
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2012/2013
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$1,255,000
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2011/2012
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$1,205,000
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2010/2011
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$1,155,000
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2009/2010
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$1,100,000
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2008/2009
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$1,045,000
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2007/2008
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$1,000,000
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The exemption may include up to $500,000 of capital gains that are disregarded under the capital gains tax (CGT) retirement exemption.
The age tests apply. The fund could not accept a contribution made after 28 days after the end of the month where the business owner turns age 75.
2. The Government co-contribution.
3. The proceeds from a settlement for an injury resulting in permanent disablement are also exempt. The amount is unlimited.
4. Downsizer Contributions within 90 days – refer to details in the Downsizer links module on this page. Age Test does not apply
However, transfers from overseas will count towards the non-concessional contributions cap.
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Contribution Caps and Bring Forward arrangements from 1 July 2024
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n addition to applying the usual age and work test restrictions in SIS Reg 7.04 (1), (see the ‘Age & Work Test’ link below), a regulated superannuation fund must not accept any non-concessional contributions in a financial year in respect of a member that exceed:
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Age
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Non-concessional contribution limit(1)
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Under 74 years old on 1 July of the year
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$120,000 per annum.
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(1) This cap is equal to 4 times the standard concessional contribution cap. Therefore, if the concessional contribution cap is not indexed in a particular year then this cap will not change either.
From 1 July 2024 the concessional cap is increased from $27,500 to $30,000. Therefore, the non-concessional cap increases to $120,000.
Individuals with a "Total Superannuation Balance" above the "General Transfer Balance Cap" at 30 June of the previous year, will no longer be eligible to make non-concessional contributions.
The Bring Forward Rule
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Total superannuation balance on 30 June 2024
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Maximum non-concessional contributions cap for the first year
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Bring-forward period
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Less than $1.66 million
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$360,000
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3 years
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$1.66million to less than $1.78 million
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$240,000
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2 years
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$1.78 million to less than $1.9million
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$120,000
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No bring-forward period, general non-concessional contributions cap applies
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$1.9 million
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nil
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Contribution Caps and Bring Forward arrangements from 1 July 2023 to 30 June 2024
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n addition to applying the usual age and work test restrictions in SIS Reg 7.04 (1), (see the ‘Age & Work Test’ link below), a regulated superannuation fund must not accept any non-concessional contributions in a financial year in respect of a member that exceed:
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Age
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Non-concessional contribution limit (1)
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Under 74 years old on 1 July of the year
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$110,000 per annum.
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(1) This cap is equal to 4 times the standard concessional contribution cap. Therefore, if the concessional contribution cap is not indexed in a particular year, then this cap will not change either.
Individuals with a "Total Superannuation Balance" above the "General Transfer Balance Cap" at 30 June of the previous year, will no longer be eligible to make non-concessional contributions.
The Bring Forward Rule
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Total superannuation balance on 30 June 2023
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Maximum non-concessional contributions cap for the first year
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Bring-forward period
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Less than $1.68 million
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$330,000
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3 years
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$1.68million to less than $1.79 million
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$220,000
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2 years
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$1.79 million to less than $1.9million
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$110,000
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No bring-forward period, general non-concessional contributions cap applies
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$1.9 million
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nil
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Contribution Caps and Bring Forward arrangement from 1 July 2021 to 30 June 2023
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In addition to applying the usual age and work test restrictions in SIS Reg 7.04 (1), (see the ‘Age & Work Test’ link below), a regulated superannuation fund must not accept any non-concessional contributions in a financial year in respect of a member that exceed:
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Age
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Non-concessional contribution limit (1)
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Under 67 years old on 1 July of the year
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$110,000 per annum.
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Age 67-74 years old on 1 July of the year
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$110,000 per annum – but only if you satisfy the work test (2)
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(1) This cap is equal to 4 times the standard concessional contribution cap. Therefore, if the concessional contribution cap is not indexed in a particular year, then this cap will not change either.
From 1 July 2021 the concessional cap is increased from $25,000 to $27,500. Therefore, the non-concessional cap increases to $110,000.
Individuals with a "Total Superannuation Balance" above the "General Transfer Balance Cap" at 30 June of the previous year, will no longer be eligible to make non-concessional contributions.
(2) The Requirement for the work test was removed from 1 July 2022
The Bring Forward Rule for 2021-2023
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Total superannuation balance on 30 June 2021
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Maximum non-concessional contributions cap for the first year
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Bring-forward period
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Less than $1.48 million
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$330,000
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3 years
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$1.4 million to less than $1.59 million
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$220,000
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2 years
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$1.59 million to less than $1.7million
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$110,000
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No bring-forward period, general non-concessional contributions cap applies
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$1.7 million
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nil
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na
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Contributions Caps from 1 July 2017 to 30 June 2021
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In addition to applying the usual age and work test restrictions in SIS Reg 7.04 (1), (see the ‘Age & Work Test’ link below), a regulated superannuation fund must not accept any non-concessional contributions in a financial year in respect of a member that exceed:
NB: Prior to 1 July 2020 the age in the table below was under 65 not under 67
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Age
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Non-concessional contribution limit (1)
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Under 67 years old on 1 July of the year
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$100,000 per annum.
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Age 67-74 years old on 1 July of the year
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$100,000 per annum – but only if you satisfy the work test (2)
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(1) This cap is equal to 4 times the standard concessional contribution cap. Therefore, if the concessional contribution cap is not indexed in a particular year then this cap will not change either.
Individuals with a total superannuation balance above $1.6 million at 30 June of the previous year will no longer be eligible to make non-concessional contributions.
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Bring Forward arrangement & Transitional Rules from 1 July 2017 to 30 June 2021
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Example: 2017-18 bring-forward period.
This example also applies from 2018/2019 to 2020/2021.
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Total superannuation balance on 30 June 2017
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Maximum non-concessional contributions cap for the first year
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Bring-forward period
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Less than $1.4 million
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$300,000
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3 years
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$1.4 million to less than $1.5 million
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$200,000
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2 years
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$1.5 million to less than $1.6 million
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$100,000
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No bring-forward period, general non-concessional contributions cap applies
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$1.6 million
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nil
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na
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The Bring Forward Rule
(2) People who contribute $300,000 prior to turning 67 (e.g., age 66) will not also be required to meet the work test in the two tax years after they make the contribution.
NB! In relation to the Bring Forward Rule the increase in the age of under 65 to under 67 does not yet apply to taxpayers who were already 65 on 30 June 2020
It is waiting on proposed legislation.
NB!
However if a person does not meet the work test during the tax year that they turn age 67, then they cannot contribute once they have turned 67, even if they have triggered the Bring Forward Rule in either of the previous 2 tax years.
If a person triggers the Bring Forward Rule before they turn age 67 (e.g. making a non-concessional contribution of $100,001 at age 66), and if they are over 67 when they make the additional contributions, then they must also have satisfied the work test in that tax year in order to be able to make additional contributions totalling up to $300,000 over the 3 years
Transitional Period
If you have triggered the bring-forward period in 2015-2016 or 2016-17 but you have not fully used your bring-forward amount before 1 July 2017, transitional arrangements will apply. This means that the maximum amount of bring-forward available will reflect the reduced annual contribution caps (see table below).
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Year bring-forward period started
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Maximum bring-forward amount in 2017-18
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2015-16
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$460,000
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2016-17
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$380,000
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2017-18
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$300,000
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To work out your non-concessional cap for the year, subtract any non-concessional contributions you have made during the bring-forward period from your maximum bring-forward amount.
Note that your maximum bring-forward amount in 2016-17 has not changed. It is still $540,000 if you have not triggered the bring-forward rules in 2014-15 or 2015-16. If you’re uncertain if you have triggered a bring-forward arrangement, or you need assistance working out your 2017-18 contributions cap, call the ATO on 13 10 20.
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Contributions Caps from 1 July 2014 to 30 June 2017
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In addition to applying the usual age and work test restrictions in SIS Reg 7.04 (1), (see the ‘Age & Work Test’ link below), a regulated superannuation fund must not accept any non-concessional contributions in a financial year in respect of a member that exceed:
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Age
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Non-concessional contribution limit (1)
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Under 65 years old on 1 July of the year
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$180,000 per annum or $540,000 if averaging over 3 years, provided that the contributions are made prior to turning age 65. Otherwise the work test must be satisfied.
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Age 65-74 years old on 1 July of the year
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$180,000 per annum – but only if you satisfy the work test (2)
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(1) This cap is equal to 6 times the standard concessional contribution cap. Therefore if the concessional contribution cap is not indexed in a particular year then this cap will not change either.
The Bring Forward Rule
(2) People who contribute $540,000 prior to turning 65 (e.g. age 64) will not also be required to meet the work test in the two tax years after they make the contribution.
NB!
However if a person does not meet the work test during the tax year that they turn age 65, then they cannot contribute once they have turned 65, even if they have triggered the Bring Forward Rule in either of the previous 2 tax years.
If a person triggers the Bring Forward Rule before they turn age 65 (e.g. making a non-concessional contribution of $180,001 at age 64), and if they are over 65 when they make the additional contributions, then they must also have satisfied the work test in that tax year in order to be able to make additional contributions totalling up to $540,000 over the 3 years.
Note also that once they are over the age of 65 (even if they satisfy the work test in that tax year), they cannot make a contribution that exceeds $180,000.
If a superannuant triggered the bring forward rule when the cap was $450,000 they cannot have access to the $540,000 cap until the 3 years from trigger has expired. They cannot top up the extra $30,000 per annum. It will be considered excess.
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Contribution Caps from 1 July 2009 to 30 June 2014
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In addition to applying the usual age and work test restrictions in SIS Reg 7.04 (1), (see the ‘Age & Work Test’ link below), a regulated superannuation fund must not accept any non-concessional contributions in a financial year in respect of a member that exceed:
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Age
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Non-concessional contribution limit (1)
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Under 65 years old on 1 July of the year
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$150,000 per annum or $450,000 if averaging over 3 years, provided that the contributions are made prior to turning age 65. Otherwise the work test must be satisfied.
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Age 65-74 years old on 1 July of the year
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$150,000 per annum – but only if you satisfy the work test (2)
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(1) This cap is equal to 6 times the standard concessional contribution cap. Therefore if the concessional contribution cap is not indexed in a particular year then this cap will not change either.
The Bring Forward Rule
(2) People who contribute $450,000 prior to turning 65 (e.g. age 64) will not also be required to meet the work test in the two tax years after they make the contribution.
NB!
However if a person does not meet the work test during the tax year that they turn age 65, then they cannot contribute once they have turned 65, even if they have triggered the Bring Forward Rule in either of the previous 2 tax years.
If a person triggers the Bring Forward Rule before they turn age 65 (e.g. making a non-concessional contribution of $150,001 at age 64), and if they are over 65 when they make the additional contributions, then they must also have satisfied the work test in that tax year in order to be able to make additional contributions totalling up to $450,000 over the 3 years.
Note also that once they are over the age of 65 (even if they satisfy the work test in that tax year), they cannot make a contribution that exceeds $150,000.
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Contribution Caps from 1 July 2007 to 30 June 2009
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2008/2009 and 2007/2008
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Age |
Non-concessional contribution limit (1) |
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Under 65 years old on 1 July of the year |
Up to $150,000 per annum or $450,000 if averaging over 3 years. |
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Age 65-74 years old on 1 July of the year |
Up to $150,000 per annum if you satisfy the work test (2) (no averaging) |
(1) This cap is equal to 3 times the concessional contribution cap. Therefore if the concessional contribution cap is not indexed in a particular year then this cap will not change either.
(2) People aged 63 and 64 who bring forward non-concessional contributions (averaging over 3 years) will not be required to meet the existing work test in the two years after they make the contribution.
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Contribution Caps from 10 May 2006 to 30 June 2007
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From 10 May 2006 to 30 June 2007, non-concessional contributions are capped at $1 million.
A person who was aged 64 between 10 May and 5 September 2006 will be able to make non-concessional superannuation contributions up to 30 June 2007 without having to satisfy the work test i.e. even though they will be age 65 when they make the contributions.
A person aged 74 between 10 May and 5 September 2006 will be able to make superannuation contributions up to 30 June 2007 if they had satisfied the work test for the relevant financial year i.e. even though they will be 75 when they make the contributions.
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Contribution Caps on or before 9 May 2006
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Contributions made on or before 9 May 2006 will not count towards the cap.
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Links to expert information on this topic
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