How much can I put into my super?
There a few different things to know about contributing into your super fund. There are different kind of caps on how much you can put into your super during a financial year and there are also restrictions and tests that must be met.
- Concessional – employer (including Salary Sacrifice), personal contributions claiming a deduction within personal tax return - $25,000.00
- Non-concessional – personal contributions, which are not being claimed as a personal deduction - $100,000.00
- Non-concessional 3 Year Bring Forward Cap – can use up to 3 years of non-concessional cap within one year - $300,000.00
But if the whole 3 year bring forward cap is used; no more non-concessional amounts can be received until the 3 years are up. For example, if someone contributes $300,000 in the 2018 financial year, this will trigger the 3 year bring forward cap. So, the 3 years would be the 2018, 2019 and 2020 financial years. Which means that this person can’t contribute any more non-concessional amounts until the 2021 financial year.
- Age restriction - as soon as someone turns 75 years old, contributions are no longer able to be received, except for employer mandatory contributions. There is a 65 year old restriction on the 3 year bring forward cap. Anyone 65 or over can’t use the bring forward cap.
- Work test - anyone between ages 65 and 74 needs to meet the work test qualification. The work test requires the person to work at least 40 hours within a 30-day consecutive period.
- Member Superannuation Fund - If a member’s superannuation balance is more than $1.6 million as of 30 June the year before, the non-concessional cap will be nil, so only concessional contributions can be received.
If you have any questions concerning your super, please contact us.