Changes to limits on concessional contributions to super

From 1 July 2007, concessional contributions made to super will be subject to an annual cap of $50,000. Concessional contributions include employer contributions (including contributions made under a salary sacrifice arrangement) and personal contributions claimed as a tax deduction by a self-employed person. The age-based limits on deductions that currently exist for these contributions will no longer apply.

You will be taxed on concessional contributions over the $50,000 cap at a rate of 31.5%. This is on top of the 15% tax paid by the fund. You can ask your super fund to release money to pay this excess contributions tax.

Between 1 July 2007 and 30 June 2012, a transitional concessional contributions cap will apply. During this time, the annual cap will be $100,000 for people aged 50 or over.