The Concessional Contributions Cap refers to the maximum level of Concessional Contributions that can be made in any one financial year.
Please click here for information on the Maximum Superannuation Contributions Base (SGC).
What is a Concessional Contribution?
A Concessional Contribution is a contribution made to superannuation where a tax deduction has been claimed.
Examples of Concessional Contributions include:
- Salary Sacrifice Contributions
- SG Contributions
- Personal Deductible Contributions
- Employer Contributions
Certain concessional contributions will need to be included as reportable employer contributions when calculating your eligibility to things such as the Co-Contribution.
All concessional contributions will incur contributions tax.
What is the Concessional Contributions Cap (2014/2015)?
Concessional Contributions Cap 2013
Concessional Contributions Cap 2014
Concessional Contributions Cap 2015
The table below details the Concessional Contribution limits for the 2013/2014 and 2014/2015 FY
| Income Year | General Cap | Cap for those aged 59 or over on 30/6/13 | Cap for those aged 49 or over on 30/6/2014 |
|---|---|---|---|
| 2014-15 | $30 000 | $35 000 | $35 000 |
| 2013-14 | $25 000 | $35 000 | $25 000 |
| 2012-13 | $25 000 | $25 000 | $25 000 |
| 2011-12 | $25 000 | $50 000 | $50 000 |
| 2010-11 | $25 000 | $50 000 | $50 000 |
What happens if I exceed the Concessional Contributions Cap (2014)?
Exceeding the Concessional Contributions Cap will result in the excess amount being included in your personal income tax return and taxed at your Marginal Tax Rate (MTR) (read more here).
There will also be a Excess Concessional Contributions (ECC) Charge, as this tax will be collected later than normal income tax.
The rate of charge for a day is calculated as:
(Base Interest Rate for the Day + 3 Percentage Points) ÷ Number of Days in the Calendar Year
The base interest rate for a day depends on which quarter of the year the day is in.
If you would like anything clarified or have any further questions about the Concessional Contributions Cap 2014 or any other topics, please do not hesitate to leave a comment.
