What are concessional contributions?
Superannuation contributions can be divided into two types — concessional (before-tax) and non-concessional (after-tax). Each type of super contribution is subject to a contributions cap. A contributions cap sets a limit on the amount of contributions you can make in any one year.
Concessional contributions include:
- employer contributions (including contributions made under a salary sacrifice arrangement)
- personal contributions claimed as a tax deduction by a self-employed person.
New concessional contribution caps for 2013/2014 year
- $25,000 cap for anyone aged 59 or under
- $35,000 cap for anyone aged 60 years or over
If you exceed the cap, your excess contributions are likely to be subject to penalty tax.
Personalised taxation & superannuation advice
Everyone’s situation is unique, so book your appointment with Wen of W Wen and Co on (02) 9871 3429 for tax tips on superannuation contributions.