Contribution caps

Your employer contributions and any salary sacrifice contributions made by your employee are considered to be concessional contributions - contributions made with pre-tax income.

Any voluntary after-tax contributions or Spouse contributions are considered to be non-concessional contributions.

Limits apply to the total amounts of concessional and non-concessional contributions your employees can make each year to any super fund. Any contributions received above the caps are taxed at a higher rate and will incur an interest charge.

 Contribution Limits for the 2019-20 Financial Year

 

Before Tax

(Concessional)

After Tax

(Non-Concessional)

Types of contributions included

Employer (including SG of 9.5%)



Salary sacrifice

 

Personal

Personal



Spouse

 

Government co-contribution1

Contribution Cap

$25,0002 per year 

 

 

$100,000 per year

 

Individuals with a total superannuation balance of $1.6 million or more will have a non-concessional contributions cap of nil.

1. Government co-contributions are not counted towards your non-concessional contributions cap.

2. Indexed annually in line with Average Weekly Ordinary Time Earnings, in increments of $2,500 (rounded down).

If you have salary sacrifice or payroll deduction arrangements in place with an employee and you are concerned they may be in danger of breaching one of the caps, we recommend discussing this with your employer.