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.

Alternatively, you can call our experts for a free chat, Mon-Fri 8am-6pm (EST) on 13 11 55, or make an obligation free appointment with a Suncorp financial planner.

Tags: Government Legislation