Superannuation contribution limits

From 1 July 2009 the concessional contribution cap was halved to $25,000 per person per annum (or $50,000 per person if the member is over 50 years of age).

The concessional contributions cap of $25,000 is not separate from the Superannuation Guarantee Contributions (SCG) requirements, so the 9% needs to be taken into account.

Employers that pay their employee’s April to June 2009 superannuation contributions in July 2009 need to include these contributions in the $25,000 cap limit for the 2009/10 financial year. That means, while you may have reduced your contributions you could still exceed the cap.

For example: If in the 2008/09 financial year you earned $75,000, your SCG at 9%  would have been $6,750. The remaining $43,250 could have been salary sacrificed to make up the $50,000 limit. From 1 July 2009 you would need to reduce your salary sacrifice amount to ensure you remain under the new $25,000 cap. However if your employer makes contributions quarterly the actual contributions the super fund receives in the 2909/10 financial year would be as follows:

April - Jun 2009 contribution (paid in July) $12,500
July 2009 - March 2010 contributions (at reduced rate) $18,750
Total contributions received 2009/10 financial year $31,250

This exceeds the new concessional contribution cap by $6,250. The additional tax payable for exceeding the contribution cap is $1,968.75.
So you need to be aware that you do not exceed the limits.

Published : 12 October 2009