What are the caps?
What happens if I go over my super cap?
Any contributions that exceed the annual caps are subject to penalty tax of 31.5%!
So how do I avoid paying extra tax?
- Be aware of your super cap.
- Calculate the amount to salary sacrifice at the beginning of each financial year and notify your employer.
- In May each year, check that that you will not exceed your cap.
- For this year, check the amounts received by all your Funds and calculate the employer super payments and the timing of the payments to be made up to 30 June. It’s the total amount/s in your Fund/s that count towards your cap.
- If your cap is likely to be exceeded, reduce your sacrificed contributions accordingly.
- Please note that, this year, June has 5 Fridays.
Federal Budget 2012 – Important Update for members 50 or more
The Government announced in the Federal Budget on 8 May 2012 that, from 1 July 2012, the concessional contribution caps will be $25,000 for all ages. Last year’s Budget measure to extend the $50,000 cap to individuals over 50 years of age with account balances of less than $500,000 has been deferred to 1 July 2014.
Please contact us for further information on how to avoid the super caps.