Additional Deductions for Superannuation Contributions

Superannuation Contributions

Over the years the amounts you are allowed to contribute to your super fund have fluctuated dramatically.  Often this depended upon your age and more recently the balance of your superannuation fund.  There are different caps for concessional (deductible) and non-concessional (non-deductible) contributions. 

Currently, the maximum amount you can claim as a tax deduction for your superannuation contributions is $25,000 per year.  These are known as concessional contributions and can be from your employer or you personally.*

From 1st July 2018 you may be able to carry forward your unused contributions to a later year if your superannuation balance is less than $500,000 at 30 June.  The first year you are eligible for this additional superannuation deduction is this financial year 2019/20.  You have up to five years to use these deduction amounts before they expire. 

In a simple example if you make no contributions for the five years 2018/19 – 2022/23, then you would be able to make concessional contributions of $150,000 in the 2023/24 year.

If you would like more information on this, please contact JHL Accounting.

The ATO also has some information regarding key superannuation rates and thresholds

*Concessional contributions are made pre-tax and include:

  • Employer Contributions
    • Compulsory employer contributions
    • Any additional pre-tax contributions your employer makes
    • Salary sacrifice payments made to your super fund
    • Other amounts paid by your employer from your pre-tax income to your super fund, such as administration fees and insurance premiums
  • Contributions you are allowed to claim as a tax deduction
  • Notional taxed contributions if you are a member of a defined benefit fund, which reflects the increase to your benefits for the year – it is the equivalent of an employer contribution; contributions made into defined benefit funds are not always linked to individual members.
  • Unfunded defined benefit contributions
  • Some amounts allocated form a fund reserve

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