Money Doesn’t Come Without Guidance ...
Concessional (pre-tax) contributions refer to any contribution into taxpayer’s super fund. These contributions include employer contributions as well as personal contributions claimed as a tax deduction. Whenever there are multiple funds, all the fund’s contributions are added and counted towards the concessional contributions cap. If contributions amount surpasses yearly cap these contributions are taxed.
Prior to 2016-17 Federal budget, the concessional contributions cap was $30,000 per financial year for any members aged below 49 and $35,000 for anyone aged 49 or above. In the 2016-17 federal budgets, the government decided to reduce the general concessional contributions cap to $25,000 for everyone, which will be applicable from 1st July 2017. So, the concessional contributions caps for 2017 financial year will not be affected by this reduction.
For 2015, 2016 and 2017 financial year the cap will be $30,000 per financial year for any members aged below 49 and $35,000 for anyone aged 49 or above and will be subject to 15% ‘contributions tax’ at a concessional rate of 15% but from 1st July 2017 any amount greater than $25,000 will be taxed at 30% rate.