Super contribution caps

Understanding contribution caps that apply to contributions made to your super in a financial year can make all the difference to the tax effectiveness of your super and your balance at retirement. Take some time today to work out how to get the most out your super tomorrow.

 

Types of contributions and the caps you need to be aware of for each.

A contribution cap is the total amount you can contribute towards your super in each financial year. A member whose total contributions in a year exceed the contribution caps may be liable for additional tax on the excess contributions.

  • Types of contributions

    These are the types of contributions the ATO includes in the concessional contribution cap:

    • Employer contributions, such as:
      • Compulsory Superannuation Guarantee (SG) contributions
      • Additional voluntary super contributions your employer makes at your request
      • Any fund costs paid by your employer on behalf of your super fund, such as administration fees and insurance premiums
      • The equivalent of your employer contributions under a defined benefit scheme as determined by the trustee
      • Salary sacrifice amounts
    • Personal contributions by an eligible person that are allowed as an income tax deduction
    • Transfers from reserves (defined by the regulations of the legislation)
    • The taxable component of a directed termination payment (or the total of directed termination payments plus any transitional eligible termination payments) in excess of $1 million.
    TIP: Your SG employer contribution plus any personal or voluntary contributions have a yearly cap of $27,500. This is called a concessional contribution cap. It means contributions made within this limit will benefit from the 15% tax rate. Any contributions in excess of this amount may be subject to higher tax.
  • Concessional contributions cap amounts 2023/2024

    Below are the concessional contribution cap amounts for the 2023/2024 financial year. Please note the caps are amended annually.

    Concessional contributions caps

    Income year

    Date

    Your age at this date

    Your concessional contribution cap

    2023-24   All ages $27,500
    2022-23   All ages $27,500
    2021-22   All ages $27,500

    2020-21

     

    All ages

    $25,000

    2019–20

     

    All ages

    $25,000

    2018–19

     

    All ages

    $25,000

    2017–18

     

    All ages

    $25,000

    2016–17

    30 June 2016

    <49

    $30,000

    2016–17

    30 June 2016

    49+

    $35,000

    2015–16

    30 June 2015

    <49

    $30,000

    2015–16

    30 June 2015

    49+

    $35,000

    2014–15

    30 June 2014

    <49

    $30,000

    2014–15

    30 June 2014

    49+

    $35,000

    2013–14

    30 June 2013

    <59

    $25,000

    2013–14

    30 June 2013

    59+

    $35,000

  • Carry forward contributions

    From 1 July 2018, if your superannuation balance is less than $500,000, you will be able to make 'carry-forward' concessional super contributions. This means that you will be able to access your unused concessional contributions cap in future years.

    You can make use of unused concessional contribution cap amounts from as far back as the 2018/19 financial year. Amounts carried forward that have not been used after five years will expire.

    Description

    2017–18

    2018–19

    2019–20

    2020–21

    2021–22

    2022-23 2023-24

    General contributions cap

    $25,000

    $25,000

    $25,000

    $25,000

    $27,500

    $27,500 $27,500

    Total unused available cap accrued

    Not applicable

    $0

    $22,000

    $44,000

    $69,000

    $69,000 $69,000

    Maximum cap available

    $25,000

    $25,000

    $47,000

    $25,000

    $96,500

    $96,500 $96,500

    Superannuation balance 30 June prior year

    Not applicable

    $480,000

    $490,000

    $505,000

    $490,000

    $500,000 $500,000

    Concessional contributions

    nil

    $3,000

    $3,000

    nil

    nil

    nil nil

    Unused concessional cap amount accrued in the relevant financial year

    $0

    $22,000

    $22,000

    $25,000

    $27,500

    $27,500 $27,500

    Source: ATO, Concessional contributions cap, Australian Taxation Office, 14 April 2020.

    This table is available at the ATO alongside additional information regarding contribution caps that you may find beneficial.

  • Downsizer contribution changes

    Downsizer contributions allow eligible individuals to contribute some or all of the proceeds of the sale of their home, without impacting other contribution caps. Unlike Non Concessional Contributions, downsizer contributions do not have a total super balance limit, or an upper age limit. This means it could be a great, final way to boost super for those who don’t meet other eligibility rules to contribute, or where the NCC cap has been earmarked for other purposes.

    What's changing?

    From 1 July 2022, the eligibility age is reducing from 65 to 60. The age reduction increases the number of individuals who may be eligible to make a downsizer contribution and boost their retirement savings.

    What’s the limit?

    Provided certain other conditions are met, it may be possible to contribute up to $300,000 per person (or $600,000 per couple) from the proceeds of selling your home.

    Downsizer contributions won’t count towards your concessional or non-concessional contribution caps.

    You’ll need to make the contribution within 90 days of settlement of your sale, and you need to complete the required forms to notify your fund that you’re making a downsizer contribution, no later than the time your contribution is made. You must have reached the eligibility age at the time of contributing.

    Other eligibility rules and requirements apply. Before you contribute it is important to seek advice.

  • Non concessional caps

    Non-concessional contributions are contributions made to your super from your after-tax income. These are subject to a contributions cap with an annual limit on the amount of non-concessional (after-tax) contributions you can make.

    Be aware that there is no contributions tax applied when contributed to the super fund. Once in the fund, the normal fund tax rates apply to earnings.

    The current non-concessional cap limit for the 2023/2024 year is $110,000 with "bring forward cap" of $330,000 moving forward.

    What is the “bring forward option” non-concessional contribution cap?

    The bring-forward option allows you to bring forward up to three years’ of non-concessional contributions from future years. If you’re under the age of 75 in the first year, you may be able to bring forward three years of non-concessional contributions, making it possible to make up to $330,000 in non-concessional contributions in a single financial year.

    For example you can make $110,000 in non-concessional contributions in the first year and the balance of $110,000 over the following two years, or any financial combination that adds up to $330,000 over the 3-year period commencing 1 July 2023.

    It’s important that you monitor the contributions you bring forward. If you exceed the cap, you will trigger the rule and be assessed by the higher cap. You don't have to do anything to have the rule triggered, except to go over your $110,000 cap.

  • Want help investing your money

    If you’re a Virgin Money Super customer, you can access our specialist helpline advice service and gain immediate simple super advice from qualified financial advisers at no additional cost to you.

    Financial advisers can help you with a range of enquiries including:

    • Superannuation rollovers
    • Superannuation customer investment choice selections
    • Selecting an appropriate super contribution amount versus paying down debt
    • Co-contributions
    • Spouse contribution splitting
    • General advice on retirement strategies
    • Selection of insured benefit levels
    • Salary sacrifice and additional voluntary contributions
     

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