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Contribution limits

Limits on single contributions

There are limits on the size of some types of contributions (generally non-concessional contributions) that we can accept on your behalf at one time. These ‘fund limits’ apply to single contributions and depend on your age at 1 July of the relevant financial year. If you are eligible to use the non-concessional cap bring forward arrangements (explained below) your ‘fund limit’ is equal to three times the annual non-concessional contributions cap. If not, the limit is equal to the annual non-concessional contributions cap. A contribution in excess of the relevant limit is required to be returned within 30 days.

Limits on total contributions

For each individual, there is an annual cap on the amount of concessional and non-concessional contributions or other payments that can be paid into the superannuation system during an income year. These caps are described below.

Contribution caps

Contribution types

Cap amount limit

Concessional contributions

 

$25,000 annual limit in 2010/2011.1,2

Amounts that exceed this limit count towards the non-concessional cap.

Non-concessional contributions

$150,000 annual limit in 2010/2011.3

If you are under age 65 at any time in a financial year, you may bring forward up to 2 future years' entitlements by making non-concessional contributions in that year of more than $150,000. Where the bring forward arrangements are used, total non-concessional contributions made in the 3-year period (starting on 1 July of the first financial year in which non-concessional contributions exceeded $150,000) cannot exceed $450,000. 

Personal injury proceeds

No cap if specific conditions are met.

CGT cap amount

$1.155 million lifetime limit in 2010/2011.1 This cap applies only if specific conditions are met.

Amounts that exceed this limit count towards the non-concessional cap.

Directed termination payments

$1 million if specific conditions are met.

This cap applies to the taxable component. Amounts of taxable component that exceed this cap count towards the concessional contributions cap.

The caps apply to all relevant contributions paid into the superannuation system for you during the course of a financial year, whether those amounts are paid by you, or by someone else (eg your employer or spouse) on your behalf and whether they are made to one or more superannuation funds.

It is your responsibility to ensure you do not exceed these caps. If the total of all relevant contributions made for you to any superannuation fund exceeds the applicable cap for a financial year, you may have an excess contributions tax liability. Refer to the Taxation section for further details.

1 Indexed to average weekly ordinary time earnings (AWOTE) each year and rounded down to the nearest $5,000.

2 A higher annual transitional limit of $50,000 will apply from 1 July 2009 until the financial year ending 30 June 2012 if you are aged 50 or more at any time in the financial year. On 2 May 2010, the Government announced that it intends for this limit to continue from 1 July 2012.

3 The annual non-concessional contributions cap is indexed so that it is six times the concessional contributions cap.