Thursday, April 1, 2010

Superannuation contribution limits

Were you planning to make extra contributions to your super fund by salary sacrificing? Beware that you do not exceed your Contributions Cap.

Working Australian Residents:

There are strict penalties if you exceed your Contributions Cap - you will be personally liable for the new tax - Excess contributions Tax. It is your responsibility to monitor your contributions.

Calculating the amount of your voluntary concessional contributions allowable to prevent the Excess contributions tax:

2009/2010 Concessional contributions cap for individuals under 50 years of age = $25,000 - 9% SG portion

2009/2010, 10/11, 11/12 Concessional contributions cap for individuals aged 50 and over = $50,000 - 9% SG portion

2009/2010 Non-concessional contributions cap is $150,000/annum. In future, the cap will be calculated as 6 times the level of the indexed concessional contributions cap.

Temporary Residents in Australia

If you hold an eligible temporary resident visa (Visa), you must claim your super benefit from your super fun within 6 months after the Visa being cancelled/expiring and you have left Australia. If this is not done within 6 months after the Visa ceases to be in effect and you have left Australia, then the money will be paid to the Commissioner as 'unclaimed money'. This can still be claimed from the ATO on 13 10 20. Your super fund is not obliged to notify orgive an exit statement to you when they transfer your superannuation to the ATO after you depart from Australia.

There are also limited conditions of release available to all temporary resident members (irrespective of whether or not they have left Australia):

* Death

* Terminal medical condition

* Permanent incapacity

* Departing Australia permanently to Temporary Residents who apply in writing for the release of their benefits

* Trustee payments to the ATO under the Superannuation (Unclaimed Money and Lost Members) Act 1999

* Temporary incapacity and/or

* Release Authorities under the Income Tax Assessment Act 1997


  1. really interesting post, very useful information about the Superannuation contribution. I think that it is important to know about this. Thanks for sharing.

  2. There have been a few minor changes since this post.

    *The excess contribution tax is charged at the MRT(marginal rate of tax+ Medicare Levy)of 46.5%. If you've exceeded *both* the concessional contributions cap(pre tax contributions) and the non concessional contributions cap (after tax contributions) > the penalty rate can be up to 93%

    New changes current @ March 2011 > If you're 50 or older, the concessional contributions cap is $50,000, but from 2012/2013 FYR it will revert to $25,000 unless your super balance is less than $500,000.

    That is, if in 2012/2013 and beyond, your super balance is less than $500,000 then you should still qualify for the $50,000 - 9% SG employer portion.

    For the best up to date source of information on super and caps, visit these two Aust. government websites:
    * Australian Taxation Office @
    * ASIC @