Concessional contributions cap
The Government has reduced the cap on concessional contributions from $50,000 to $25,000 p.a. for the 2010 financial year, and the transitional cap for those 50 or over from $100,000 to $50,000 p.a. from 1 July 2009 to 30 June 2012. (See table below)
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
|FINANCIAL YEAR (Ended 30 June)||AMOUNT OF CAP|
Transitional arrangement for the concessional contributions cap
A transitional concessional contributions cap applies until 30 June 2012 for people 50 years old or over. If you were 50 years old or over, the annual cap for the 2008 and 2009 financial years was $100,000. The annual cap for the 2010, 2011 and 2012 financial years is $50,000. If you have more than one fund, all concessional contributions made to all your funds are added together and count towards the cap. This cap is not indexed.
Non-concessional contributions cap
Changes to the non-concessional contributions cap have also been legislated. The non-concessional contributions cap was set at three times the concessional contributions cap of $50,000 for the 2009 financial year, which equals $150,000 p.a., or $450,000 under the ‘bring forward rule’.
This will stay at the same level of $150,000 p.a., or $450,000 under the ‘bring forward rule’ for the 2010 financial year, but is now calculated at six times the level of the concessional contributions cap for the 2011 financial year onwards.