As the end of the financial year rapidly draws to a close, have you thought to check your super contributions? Below is a brief overview of  the superannuation contribution caps for the 2015/2016 financial year – don’t leave it too late!

Concessional (before-tax) contributions 2015/2016

A concessional contribution is a contribution that is made by or for you to a complying super fund, and is considered to assessable income of the fund.  The reason that it is considered to be ‘concessional’ in nature is because the contribution effectively comes out of your before-tax income, and these funds are then taxed upon entry to the super fund, but at a concessional rate (typically 15%). The contributions that your employer makes for you (SGC) are considered to be Concessional, as are salary sacrifice contributions to super.

Under 50’s concessional contributions cap:

• For the 2015/2016 year: If you’re aged 48 years or younger on the 30 June 2015, you can contribute up to $30,000 a year in concessional contributions for the 2015/2016 year.

Over 50’s concessional contributions cap:

• For the 2015/2016 year: If you’re aged 49 years or older on the 30 June 2015, then you can contribute up to $35,000 a year in concessional contributions for the 2014/2015 year.

Non-concessional contributions 2015/2016

Non-concessional contributions are voluntary contributions that are made from after tax (already taxed) funds and are not claimed as an income tax deduction by you, or your employer. Essentially, these are funds that have already been paid to you and have already had tax withheld, and you have contributed these to superannuation. These are not taxed on entry to the fund, obviously because this would be double tax.

The non-concessional contributions cap remains at $180,000 for the 2015/2016 year for all ages. Alternatively if you take advantage of the bring-forward rule during the 2015/2016 year, then you can make up to $540,000 in non-concessional contributions in one year, or over 3 years in various combinations.

You should be aware however, that if you are close to turning age 65, there are other conditions that you must satisfy and you should be careful using the bring forward method. You should seek advice from a Chartered Accountant on this or visit the ATO website for information on Non Concessional Contributions.

If you’re looking for advice on superannuation contributions for this financial year from an Accountant who specialises in superannuation, please contact our office on (03) 9999 7200 or contact us here.

All information provided in this article is of a general nature only and is not personal financial or accounting advice. Also, changes in legislation may occur frequently. We recommend that our formal advice be obtained before acting on the basis of our information.