Superannuation Contributions 2013
Written on the 11th of July 2012
The Australian Taxation Office (“ATO”) has released the superannuation contributions caps for the 2012/2013 year which we have set out below. In this article we explore the types of contributions that can be made to superannuation and the caps that set a limit on the amount of contributions an individual can make in any year.
What contributions can I make to superannuation?
Superannuation contributions can be divided into two types:
“Concessional contributions” are contributions that receive special tax treatment. They include:
For individuals who:
these individuals can make concessional contributions and claim them as a tax deduction.
“Non-concessional contributions” are contributions made to superannuation from after-tax income. These contributions are not taxable in the superannuation fund.
What are the caps on my superannuation contribution?
Both concessional contributions and non-concessional contributions are subject to a contributions cap which sets a limit on the amount of contributions that can be made by an individual in any one year.
If the cap is exceeded the excess contributions are likely to be subject to penalty tax..
Age 65 to 74 - Work Test
An individual aged 65 or over planning on making superannuation contributions must satisfy a work test, that is they must be gainfully employed for at least 40 hours in a period of not more than 30 consecutive days in the financial year in which the contribution is made.
Age 75 or over
Once you turn 75 years old, you are generally unable to make any super contributions. However, your fund can accept employer contributions your employer is required to make under an industrial award or agreement.
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