New non-concessional caps
Non-concessional contributions are generally those contributions that you make to super from your after-tax income.
You can make a non-concessional contribution if you are:
- under age 65, or
- aged 65 to 74 and meet a work test (gainfully employed for at least 40 hours in 30 consecutive days in the financial year of the contribution), and
- your total super balance is under the transfer balance cap of $1.6 million on 30 June of the previous financial year.
Lower contribution caps
The annual non-concessional contribution cap is now $100,000 (down from $180,000), with the ‘bring forward’ non-concessional contribution cap now up to $300,000 (down from $540,000, if you are under age 65).
You are now also not able to make non-concessional contributions if your total super balance exceeds the transfer balance cap ($1.6 million for 2017/18) on 30 June of the previous financial year.
Transitional rules apply if you made non-concessional contributions totalling more than $180,000 in 2015/16 or 2016/17.
‘Bring forward’ contribution cap
You can ‘bring forward’ two or three times the annual non-concessional contribution cap, depending on your total super balance.
Your super balance is tested on 30 June of the financial year prior to access the ‘bring forward’ cap, and each 30 June during the ‘bring forward’ period.
If your balance is close to the transfer balance cap ($1.6 million in 2017/18) on 30 June, you will only be able to bring forward the annual cap amount for the number of years that would take your balance to reach the cap.
|Total Super Balance (30 June prior)||NCC||Bring-forward period|
|<$1.4 million||$300,000||3 years|
|$1.4 - $1.5 million||$200,000||2 years|
|$1.5 - $1.6 million||$100,000||N/A|
Tax deductions for personal contributions
If you are under 65 (regardless of your employment status), or aged 65 to 74 and meet the work test, you can now claim a tax deduction for your personal super contributions up to the concessional contributions cap of $25,000. Remember your employer super contributions also count towards this cap.
Those able to claim a tax deduction prior to 1 July were limited to self-employed individuals, and those who earn less than 10 per cent of their total income from employment.
Have a question?
Your financial adviser can provide you with more information and answer any questions that you may have.