Concessional contributions are generally tax deductible to the contributor and taxed in the fund and include the following types of contributions (s 295-25(2)):- Employer Contributions being:- - SG (i.e. 9%) contributions;
- Mandatory contributions made under an award;
- Additional voluntary contributions made by the employer;
- Voluntary employee salary sacrifice contributions
- Personal contributions claimed as a tax deduction by a self-employed person, or substantially self-employed person under the 10 percent rule
- Personal contributions claimed as a tax deduction by a person who is not working, and is < 65 years old, and
- A transfer from a foreign superannuation fund that is taxed in the Australian fund
Non-concessional contributions are other contributions generally non-deductible and untaxed in most superannuation funds. Both types of contributions are subject to the maximum annual thresholds under current legislation with proposed changes apply from 1st July 2009. Superannuation Contributions Caps (per person) | Contribution Type | Taxpayer Age | Annual Cap current rules to 2008/09 | Proposed Annual Cap (2009/10 onwards) | Concessional | < 50 years old at 30/6 | $50,000 | $25,000 | Concessional | > 50 years old at 30/6 | $100,000 | $50,000 | Non-concessional | < 65 years at 1/7 | $150,000 (or $450,000 across a 3 year period) | $150,000 (or $450,000 across a 3 year period) | Non-concessional | > 65 years at 1/7 | $150,000 | $150,000 |
5th-July-2009 | 