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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

 

$50,000 annual limit in 2008/2009. Proposed $25,000 annual limit in 2009/2010.123

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

Non-concessional contributions

Until the financial year ending 30 June 2009 the annual non-concessional contributions cap is three times the concessional cap (refer above).

From 1 July 2009 the proposed annual cap is six times the concessional contributions cap4.

If you are under 65 at any time in a financial year, you may ‘bring forward’ up to two future years’ contribution entitlements so as to contribute a maximum of three times the annual non-concessional contributions cap over a three year period.

Personal injury proceeds

No cap if specific conditions are met.

CGT cap amount

$1.045 million lifetime limit in 2008/2009. $1.1 million lifetime limit in 2009/2010. This cap applies only if specific conditions are met.2

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.

1The cap is proposed to be reduced from $55,000 as announced in the 2009 Federal Budget. This measure has not become law at the time of publication.

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

3 A higher annual transitional limit of $100,000 will apply in 2008/2009 if you were aged 50 or more on at any time in the financial year. From 1 July 2009 until 30 June 2012, the cap is proposed to be reduced to $50,000 (not indexed), as announced in the 2009 Federal Budget. This measure has not yet become law at the time of publication.

4 The cap is proposed to be reduced from three times the concessional cap as announced in the 2009 Federal Budget. This measure has not become law at the time of publication.