Lower concessional cap
Concessional contributions are generally those made from your pre-tax income, such as those made by your employer or via salary sacrifice.
A lower annual cap
The annual cap for concessional contributions is now $25,000, regardless of age.
This $25,000 cap will be reviewed annually for indexation, in line with wages (AWOTE), but will only increase in $2,500 increments.
Carrying forward unused caps
If your total super balance is less than $500,000, you can carry forward your unused contribution cap amounts on a rolling five-year basis.
Only unused contribution cap amounts accrued from 1 July 2018 can be carried forward. From 1 July 2019 you can make additional concessional contributions on top of the general concessional cap with these unused amounts, provided your total super balance is less than $500,000.
After five years, any amounts carried forward that have not been used expire.
Additional tax on concessional contributions
If your adjusted taxable income is above $250,000 pa (previously $300,000 pa), you will pay an additional 15 per cent tax on all concessional contributions.
Have a question?
Your financial adviser can provide you with more information and answer any questions that you may have.