It is very important to not exceed your concessional contribution caps in your super fund.

Concessional contributions represent pre-tax contributions to your super fund. These include your employer mandated contribution, salary sacrifice contributions and any member contribution where you are claiming a tax deduction for it.

The contributions are recorded when they are received and not the period they relate to.

Contributions exceeding the cap are subjected to excess contributions tax. This penalty tax is imposed on the individual and is calculated using marginal tax rates. Other interest charges and tax offsets will apply.

Pro Tips

Be careful of the timing when your employer pays the contribution. Last years contribution paid in July will count towards this years cap.

Know your cap limits! There have been changes with the recent budget, so you may be able to contribute more than you think.

Author: Heather Cox