What is the maximum non-concessional contribution cap?
From 1 July 2017 to 30 June 2021 the general non-concessional contributions cap was $100,000….Non-concessional contributions caps in the current and previous financial years.
| Income year | Amount of cap* |
|---|---|
| 2021–22 | $110,000 |
| 2020–21 | $100,000 |
| 2019–20 | $100,000 |
What happens if I exceed my non-concessional contribution cap?
Exceeding non-concessional contributions caps The excess is taxed at 45% + Medicare (2%). Instead of taxing the whole amount of the excess at the very high rates above, if you elect to refund you will only pay tax on the notional earnings. These will be taxed just like normal personal income, less a 15% tax offset.
How much non-concessional contributions can I make?
From 1 July 2017 to 30 June 2021, the non-concessional contributions cap is $100,000. Your own cap might be different. It can be: higher, if you can use the bring-forward arrangements.
What happens if I put more than 25000 into super?
If you leave the excess contributions in your super account, they will be counted towards your annual non-concessional contributions cap. When you exceed your concessional contributions cap and have to pay tax, the ATO recognises you have already paid 15% tax on the contributions and gives you a tax offset.
Is it worth making non-concessional super contributions?
Making non-concessional contributions to your spouse’s super fund can be an effective strategy to reduce, or even eliminate, the amount of tax you pay. This strategy can also assist in equalising the level of retirement savings that you and your spouse have.
Is it worth making non-concessional contributions?
Should I contribute to super before or after tax?
Your salary is sacrificed straight into your super, so it’s taken from your gross (before-tax) pay. This means it’ll be taxed at 15%, unless you’ve exceeded the concessional contributions cap.
Is it worth making after tax super contributions?
If you’re employed, your employer should be paying a percentage of your earnings into your super account. It’s worth checking to make sure you’re being paid the right amount. If you can afford it, making extra contributions is a great way to boost your retirement savings. And it can reduce your tax.
