Contribution cap changes
4/3/2014 3:59PM
Contribution cap changes
The contribution caps are set to increase from 1st July 2014. These increases are in line with the increase in AWOTE, with the increase applying to both the Concessional and Non Concessional Caps.
Indexation of the general concessional contributions cap was paused at $25,000 up to and including the 2013–14 year. Normal indexation resumes for the 2014–15 year.
Concessional contributions.
These are:
- Employer contributions (including contributions made under a salary sacrifice arrangement)
- Personal contributions claimed as a tax deduction by a self-employed person.
|
Concessional contributions general cap for a given income year |
|
|
Income year |
Amount of general cap |
|
2014-15 |
$30,000 |
|
2013–14 |
$25,000 |
|
2012–13 |
$25,000 |
|
2011–12 |
$25,000 |
|
2010–11 |
$25,000 |
|
2009–10 |
$25,000 |
|
2008–09 |
$50,000 |
People aged 59 years or over on 30 June 2013, and 49 years or over on 30 June 2014
The concessional contributions cap will be temporarily increased to $35,000 for the:
- 2013–14 financial year if you are aged 59 years or over on 30 June 2013
- 2014–15 financial year or a later financial year if you are aged 49 years or over on the last day of the previous financial year.
The temporary higher cap is not indexed and will cease when the general concessional contributions cap is indexed to $35,000.
|
Concessional contributions cap for those aged 59 years or over on 30 June 2013 and those aged 49 years or over on 30 June 2014 |
|||
|
Income year |
Cap for those aged 59 years or over on 30 June 2013 |
Cap for those aged 49 years or over on 30 June 2014 |
|
|
2014–15 |
$35,000 |
$35,000 |
|
|
2013–14 |
$35,000 |
$25,000 |
|
Non Concessional
Non-concessional contributions are generally contributions made by a member from their after-tax income or savings. They may also be made by your spouse.
- Personal contributions: a contribution you make to your account balance from your after-tax money for which you do not claim a tax deduction.
- Spouse contributions: a contribution by your spouse from their after-tax money to your account balance for which your spouse may be entitled to claim a spouse contribution offset.
The cap is 6 times the base Concessional Cap and therefore the Non-Concessional Contribution Cap will increase to $180,000 pa
Using the bringing forward will enable up to $540,000 in a one year, by bring forward the future two years worth of contributions.
|
Non -Concessional contributions general cap for a given income year |
|
|
Income year |
Amount of general cap |
|
2014-15 |
$180,000 |
|
2013–14 |
$150,000 |
|
2012–13 |
$150,000 |
|
2011–12 |
$150,000 |
The contributions listed above are the proposed levels due to start on 1st July 2014. You should however confirm that they are implemented as stated and that no last minute amendments are made. You should also check your own circumstances and verify past contributions and future contribution eligibility.