News & Information

A comparison chart of the changes to the Superannuation contribution limits in the 2016/17 financial year.

February 03, 2017

The federal government limits the amount an individual can contribute to their Superannuation. Taxation changes are also occurring.

What are the types of contribution I can make to Superannuation?

Contribution Type

Financial year

Tax rate

Details

Concessional Contributions
(Mainly employer or Salary sacrifice Superannuation contributions or Superannuation contributions made by the self-employed)

16/17

15% or 30% depending on level of taxable income

  • Taxed at 15% for those earning less than $300,000. 30% tax is payable for those earning over $300,000 #

17/18 and onwards

15% or 30% depending on level of taxable income

Taxed at 15% for those earning less than $250,000. 30% tax is payable for those earning over $250,000 #

Maximum Deductible Contribution limits
(This limit includes employer Superannuation Guarantee Contributions, and other contributions attracting contributions tax)

16/17

-

  • < 50 at 30/06/2016:

Maximum Deductible Contribution of $30,000 #

  • > 50 at 30/06/2016:

Maximum Deductible Contribution of $35,000 #

17/18 and onwards

-

  • Not age dependant:

Maximum Deductible Contribution of $25,000 #

After-Tax Contributions (Personal contributions also referred to as Non-Concessional Contributions)

16/17

0

  • Maximum of $180,000 in any one financial year #
  • Using the Bring Forward* rule, a maximum of $540,000 can be contributed to Superannuation #

17/18 and onwards

0

  • Maximum of $100,000 in any one financial year #
  • Using the Bring Forward* rule, a maximum of $300,000 can be contributed to Superannuation #

Co Contributions

(These are designed to help boost low income earners personal superannuation contributions with a top up from the Government)

16/17

0

  • Where an individual earns less than $51,021, that person may be eligible for a co contribution from the Government if they add personal contributions to the Superannuation account. #
  • Max co-cont. of $500 based on an additional personal contribution of $1,000 #

17/18 and onwards

0

No detail as yet on any proposed changes to this.

Spouse Contribution
(Intended to assist low income spouse Superannuation by having a contribution made by the primary income producer)

16/17

 

  • Where a spouse income is less than $13,800, you may contribute up to $3,000 and receive a 15% offset (up to $540) #

17/18 and onwards

 

  • Increase spouse income limit to $40,000, you may contribute up to $3,000 and receive a 15% offset (up to $540) #



# These notes are a summary only. You should seek professional financial advice in relation to any contribution matters prior to making a financial decision or commitment

* Bring forward rule allows an individual to make a one off larger Non-Concessional contribution to Superannuation by allowing a maximum of 3 years of Non-Concessional Contributions. If this rule is used then no further Non-Concessional Contributions can be made until 3 financial year have passed. There are other conditions that need to be met or considered in order to use this including the maximum cap on balances in Superannuation…