In short, for the 2015/2016 year, there are 2 annual concessional contributions caps you need to be aware of when considering before-tax contribution strategies, namely: 1  $30,000 cap for anyone aged 48 or under as at 30 June 2015. 2  $35,000 cap for anyone aged 49 years or over as at 30 June 2015. Each type of super contribution is subject to a contributions cap. A contributions cap sets a limit on the amount of contributions you can make in any one year. This article explains all of the important rules that apply to concessional contributions. (For the 2014/2015 year, and for the 2015/2016 year, the federal government places up to $500 of tax-free super money into your super fund when you make a $1,000 after-tax contribution. See the SuperGuide article Cashing in on the co-contribution rules (2015/2016 year) . Each type of super contribution is subject to a contributions cap. A contributions cap sets a limit on the amount of contributions you can make in any one year. This article explains all of the important rules that apply to concessional contributions. If you earn over $18,200 a year you start paying income tax – 19c for each dollar over $18,200. If you earn over $37,000 it jumps to 32.5c to the dollar and so on. Salary sacrifice into your super lets you put your salary into your super at a contribution tax rate (CTR) of a flat 15%. The amount of your taxable income is therefore reduced and may drop to a lower Marginal Tax Rate (MTR). For the 2015/2016 year: If you’re aged 49 years or older on the 30 June 2015, then you can contribute up to $35,000 a year in concessional contributions for the 2015/2016 year. For more information on the general bring-forward rules see SuperGuide article Super contributions: Beef up using a bring forward. Example: For the 2013/2014 year, you could make up to $450,000 in one year, representing your cap for that financial year, and the following two years (2014/2015 and 2015/2016 year). The salary sacrificing or “concessional” cap for superannuation is to be increased to $30,000 for the 2014-15 year, from $25,000 now. The cap is is the limit on how much can be salary sacrificed into super in a financial year and includes the compulsory super paid by employers. Salary sacrificing is a powerful way to save for retirement for most people as the contributions tax on super is 15 per cent compared with your marginal income tax rate. For the 2015/2016 year: If you’re aged 48 years or younger on the 30 June 2015, you can contribute up to $30,000 a year in concessional contributions for the 2015/2016 year. Refer table below. For more information on the general bring-forward rules see SuperGuide article Super contributions: Beef up using a bring forward. Example: For the 2013/2014 year, you could make up to $450,000 in one year, representing your cap for that financial year, and the following two years (2014/2015 and 2015/2016 year). If you earn below $37,000 there may be limited advantage in a salary sacrifice arrangement because the tax rate on your salary is only a few percentage points more than the tax on your super contributions. A Government co-contribution could be a more effective way to boost your super. 1 You cannot salary sacrifice award payments. 2  You cannot salary sacrifice bonus or commission payments after they have been earned. 3  There’s a limit of $30,000 a year for those aged under 50 and $35,000 a year for those aged 50 and over for all before-tax Case study: Crystal boosts her super by salary sacrificing. Crystal earns $90,000 before tax, excluding her employer's super contribution. If Crystal decides to redirect $10,000 of her pay into salary sacrifice super contributions, she will save $2,400 in tax, with the extra money going into her super fund. If you earn more than $37,000, salary sacrifice can be a good way to grow your super. It involves giving up some of your pay and putting it into your super instead. You will save tax and boost your super. Salary sacrificing is when you ask your employer to redirect a portion of your pay as a contribution to super. There is a limit on how much you can put into super each year by salary sacrifice. Most people can contribute up to $30,000, including your employer's 9.5% super guarantee contribution. This is called the concessional contributions cap. If you earn more than $37,000, salary sacrifice can be a good way to grow your super. It involves giving up some of your pay and putting it into your super instead. You will save tax and boost your super. Salary sacrificing is when you ask your employer to redirect a portion of your pay as a contribution to super. For the 2014/2015 year: If you’re aged 48 years or younger on the 30 June 2014, you can contribute up to $30,000 a year in concessional contributions for the 2014/2015 year (for previous years the cap was $25,000). For more information on the general bring-forward rules see SuperGuide article Super contributions: Beef up using a bring forward. Example: For the 2013/2014 year, you could make up to $450,000 in one year, representing your cap for that financial year, and the following two years (2014/2015 and 2015/2016 year).
http://www.superguide.com.au/boost-your-superannuation/super-concessional-contributions-survival-guide http://www.superguide.com.au/boost-your-superannuation/super-concessional-contributions-survival-guide http://www.wasuper.com.au/super/growing-your-super/salary-sacrifice/ http://www.superguide.com.au/boost-your-superannuation/super-contributions-caps-2015-2016-year http://www.smh.com.au/money/super-and-funds/super-cap-to-be-lifted-to-30000-for-all-20140228-33pi3.html http://www.superguide.com.au/boost-your-superannuation/super-contributions-caps-2015-2016-year https://www.australiansuper.com/superannuation/adding-to-my-super/make-salary-sacrifice-payment.aspx https://www.moneysmart.gov.au/superannuation-and-retirement/how-super-works/super-contributions/contributing-extra-to-super https://www.moneysmart.gov.au/superannuation-and-retirement/how-super-works/super-contributions/contributing-extra-to-super http://www.superguide.com.au/boost-your-superannuation/super-contributions-caps-2015-2016-year
salary sacrifice super limits