Skip to Main Content. Super for employers Super is money you pay for your workers to provide for their retirement. What are the super contributions caps? Your total super balance, as at 30 June of the previous financial year, must be less than $1.6 million. Your concessional contribution cap includes your employer’s contribution (under the Superannuation Guarantee), and voluntary super contributions such as those made under a salary sacrifice arrangement, as well as personal after-tax contributions that you claim a tax deduction on. CONCESSIONAL CAPS The concessional contribution cap limits how much you and your employer can contribute to super at the concessional tax rate of 15% before additional tax is charged. What are concessional contributions? Contributions caps. Super balances accumulated in excess of the cap can remain in the accumulation fund with earnings generally taxed at the normal fund rate of 15%. Non-Concessional Contributions in excess of the cap will be taxed at 47%. They may come from your employer (such as the 9.5% superannuation guarantee), salary-sacrifice arrangements with your employer or tax-deductible personal contributions. If you earn above that limit for each quarter, your employer does not have to make contributions for the part of your earnings over the limit. After-tax super cap: $100,000 – but could be more where members use the ‘bring forward’ rule. Before acting on the advice, consider its appropriateness. There are two types of cap: Before-tax contributions include employer contributions (the Super Guarantee or SG) and salary sacrifice. While you are working, your employer is required to make contributions into your superannuation fund equal to a rate of 9.5% of your salary. Concessional contributions are super contributions from income that tax has not already been paid on. Getting super calculations right isn’t always straightforward, but our business specialists can help make it a bit easier. Non-concessional contribution cap The non-concessional contribution cap for 2020-21 is $100,000, provided your total super balance on 30 June 2020 was less than $1.6 million. Under the SG, compulsory superannuation is set at a percentage of each employee’s regular income – usually at least 9.5% of an employees’ ordinary time earnings. These contributions are not taxed in your super fund. The ATO has more information on contribution caps. are in addition to any compulsory super contributions your employer makes on your behalf do not include super contributions made through a salary-sacrifice arrangement. There are two types of cap: a maximum before-tax contribution limit, and a limit on after-tax contributions. From 1 July 2017 the bring-forward amount and period is dependent on your total superannuation balance on the day before the financial year contributions … CALL NOW. From 1 July 2017, the annual non-concessional (after tax) contribution cap was reduced from $180,000 to $100,000 per year. The maximum super contribution base for 2020/21 is $57,090 per quarter, which is equivalent to $228,360 a year. Check when your employer pays the contributions and when they were received by your super fund – contributions count towards a cap in the year your super fund receives them. The cap amount, and how much extra tax you have to pay, depends on: The Superannuation Guarantee (SG) contributions made by your employer into your super account are the foundation of a successful retirement. Your employer is required to pay SG contributions on your earnings up to an income limit. The cap amount that applies is three times the non-concessional contributions cap for the financial year in which you make the contribution. The cap is set at $1.6 million as at 1 July 2017 and will be indexed annually in increments of $100,000. Before-tax super cap: $25,000 (including employer contributions) – but could be more where members use the ‘carry forward’ rule. From 1 July 2017, your non-concessional contributions cap will be nil if you have a total super balance greater than or equal to $1.6 million at the end of 30 June of the previous financial year. Skip to Main Content. The maximum contribution base is applied against the employer, not the employee. Read on. Contribution type Annual cap or limit (2019/20 and 2020/21) Concessional (before-tax) contributions: $25,000 regardless of age; If you have a Total Super Balance of less than $500,000 on 30 June of the previous financial year, you can use any unused amount of your cap for up to 5 years to make a ‘Carry-Forward Contribution’. MENU. SG contributions are the compulsory contributions made by your employer into your super account on your behalf as part of your pay. We currently manage over $5 billion. Employees can withdraw excess contributions to super, although they have to pay income tax on any earnings from the excess contributions. If you contribute more than these caps, you may have to pay extra tax. JOIN Member join Employer join. Refer to our Product Disclosure Statement (PDS). Read on. From 1 July 2017 the bring-forward amount and period is dependent on your total superannuation balance on the day before the financial year contributions … A small business retirement CGT-exempt amount contributed to a super fund can by election can be excluded from the non-concessional contributions cap and counted towards the superannuation CGT cap. Super contribution rules if you're close to $1.6m cap Even if your total super balance is just $10,000 short of the cap at June 30, you can put in $100,000 the … Concessional Contributions Cap From 1 July 2017, the general concessional contributions cap dropped to $25,000 for all ages. After-tax contributions are also called ‘non-concessional contributions’ and include money you put into your super account from your after-tax income, and contributions from your spouse. There’s a cap on how much can be put into your super at the concessional tax rate each year. Non-concessional (after-tax) contributions are super contributions made from after-tax dollars or non-taxed savings. The PDS is relevant when deciding whether to acquire or hold a product. This limit is called the maximum super contribution base. Superannuation Calculators for Employers. Employer super (overview) Non-concessional contributions are made into your super fund from after-tax income. General advice on this website has been prepared without taking into account your objectives, financial situation or needs. If you earn above this quarterly limit, your employer does not have to make contributions for the part of your earnings over the limit. The minimum you must pay is called the super guarantee (SG): Generally, non-concessional contributions are contributions made into your SMSF that are not included in the SMSF's assessable income. JOIN LOGIN. So it’s worth understanding the SG rules and how they work. Total Super Balance (on 30 June of previous financial year), Bring-Forward Rule** (triggered in 2017-18), Bring-Forward Rule** (triggered in 2016-17 but not fully utilised by 30 June 2017). After-tax income contribution payments that you make, After-tax contributions that your employer makes on your behalf, Contributions your spouse makes to your super fund (unless your spouse makes contributions as your employer). Non-concessional (after-tax) contributions are super contributions made from after-tax dollars or non-taxed savings. This field is for validation purposes and should be left unchanged. The current SG contribution rate is 9.5% of your earnings up to a certain limit. MENU. The most common type is personal contributions made by the member for which no income tax deduction is claimed. Want to know which employees you need to make contributions for? We exist only to benefit our members, and have been helping employers manage employee super since 1984. Concessional contributions cap. Read on. How employer super contributions work . For the 2014–15, 2015–16 and 2016–17 financial years non-concessional contributions are subject to a yearly cap of $180,000 for members 65 or over but under 75 or $540,000 over a three-year period for members under 65. After-tax contributions cap You can generally contribute up to $100,000 in after-tax contributions each financial year without having to pay extra tax. See our Super Sort-out page or call us on 1800 222 071 between 8am and 8pm (AEST/AEDT) weekdays. In 2020-21, once an employee’s income reaches $228,360 per year, then the super is calculated based on that maximum, it does not keep rising. They include employer contributions, salary sacrifice contributions and contributions claimed as a tax deduction. Disclosure Statements (PDS). If you earn above the limit in a particular quarter, your employer is not required to make SG contributions for the part of your earnings over this limit. Need to calculate how much super you should paying for your employees? Concessional contributions are before-tax contributions made into your super fund from a number of potential sources. Super caps are the limits to annual super contributions. The cap has fluctuated over the years but at the moment it’s $25,000. Generally, if you pay an employee $450 or more before tax in a calendar month, you have to pay super on top of their wages. https://www.sunsuper.com.au/members/add-to-super/contribution-caps They may come from your employer (such as the 9.5% superannuation guarantee), salary-sacrifice arrangements with your employer or tax-deductible personal contributions. Before acting on the advice, consider its appropriateness. Concessional contributions cap. If you are under 67 years old, you may be able to make non-concessional contributions of … The maximum contribution base is applied against the employer, not the employee. The current SG contribution rate is 9.5% of your earnings up to the maximum super contribution base for 2020/21. That means that the most a business would normally be expected to contribute in super for a single employee is around $21,694 in 2020-21. There’s a free super calculator for that. contributions, your salary-sacrificed contributions, or any contributions claimed as a tax deduction. Check when your employer pays the contributions and when they were received by your super fund – contributions count towards a cap in the year your super fund receives them. contributions are generally contributions which are made by you or for you from any after-tax income. Concessional contributions are those made to a super fund out of an individual’s pre-tax income and are taxed at 15 Need to know more about before tax and after-tax super contribution caps and limits? Need to know more about before tax and after-tax super contribution caps and limits? The PDS is relevant when deciding whether to acquire or hold a product. The cap is the maximum amount which can be transferred into tax-free pension status. So if you have any queries, call us on 1800 222 071 between 8am and 8pm (AEST/AEDT) weekdays or get in touch with the Account Manager for your state. The cap is set at $1.6 million as at 1 July 2017 and is indexed annually subject to increments of $100,000. If you have more than one job or pay money into more than one super fund, include all of them when working out your annual contributions. Super contribution rules if you're close to $1.6m cap. 1 This is called the Superannuation Guarantee (SG) and is a before-tax contribution. In 2019/20 and 2020/21 the SG level is 9.5% of your ordinary time earnings (OTE), but this is set to rise slowly to 12% by 1 July 2025. There’s a super calculator for that too. Therefore, a person may receive SGC contributions on a salary in excess of the maximum super contribution base if, for example, the employee was on a high income and changed jobs part-way through a quarter, or if the employee had two different high paying jobs. Employer Contributions Employers are obligated to make SG contributions to their eligible employees’ super accounts, currently at a minimum rate of 9.5% of the employee’s wages, or ordinary time earnings. CALL NOW. contributions cap due to the higher contributions required under the Local Government Act. Getting super calculations right isn’t always straightforward, but our business specialists can help make it a bit easier. The cap is the maximum amount which can be transferred into tax-free pension status. General advice on this website has been prepared without taking into account your objectives, financial situation or needs. AFSL 287347. By your employer through salary sacrifice or super guarantee (SG) payments. Contribution type Annual cap or limit (2020/2021) Concessional (before-tax) contributions: $25,000 regardless of age; If you have a Total Super Balance of less than $500,000 on 30 June of the previous financial year, you can utilise any unused amount of your cap for up to 5 years to make a carry-forward contribution; Non-concessional (after-tax) contributions Employer super (overview) So if you have any queries, call us on, between 8am and 8pm (AEST/AEDT) weekdays or get in touch with the, Find out when you can withdraw your super, New COVID-19 tax break for working from home, a maximum before-tax contribution limit, and. Refer to our Product Even though you are in your 60s, there are still annual limits or caps on the amount of money you and your employer can contribute into your super account. The non-concessional contribution cap for 2020-21 is $100,000, provided your total super balance on 30 June 2020 was less than $1.6 million. JOIN Member join Employer join. For example, if you made $50,000 concessional contributions to West State Super (including your employer contributions) you would not be able to make any further concessional contributions to a taxed scheme. Given the generous tax benefits available for holding your retirement savings in the super system, the government has put in place strict annual caps or limits on both the amount of concessional (before-tax) and non-concessional (after-tax) contributions that can be made into your super account. There are caps on the non-concessional contributions you can make each financial year. Concessional contributions are super contributions from income that tax has not already been paid on. What are concessional contributions? Contribution caps Caps apply to contributions made to your super in a financial year. They include employer contributions, salary sacrifice contributions and contributions claimed as a tax deduction. Read on. How the caps work in 2020-21 Before-tax contribution cap: $25,000 per year 1 … From 1 July 2017, the general concessional (before-tax) contributions cap is $25,000 for everyone, regardless of their age. If you are under 67 years old, you may be able to make non-concessional contributions of up to three times the annual cap in a single year. From 1 July 2017 bring forward arrangements for unused non-concessional cap contributions are available for under 65 year olds.. CGT Non-concessional Contributions Cap. Employer superannuation contributions, including compulsory Superannuation Guarantees; Life insurance premiums within a super fund that is paid by the employer on a member’s behalf; Salary sacrifice and personal contributions for which a tax deduction has been claimed. Super balances accumulated in excess of the cap can remain in the accumulation fund with earnings generally taxed at the normal fund rate of 15%. Opinion. When applying the ‘extra’ tax, the ATO allow for the fact that your super fund has already paid 15% tax within the fund. contributions cap due to the higher contributions required under the Local Government Act. By you through personal deductible super contributions. Therefore, a person may receive SGC contributions on a salary in excess of the maximum super contribution base if, for example, the employee was on a high income and changed jobs part-way through a quarter, or if the employee had two different high paying jobs. Super caps are the limits to annual super contributions. Concessional Contributions in excess of the cap will be taxed at your marginal tax rate (as calculated by the ATO) plus an interest charge. TWUSUPER is the Industry Super Fund for people in transport and logistics - the people who keep Australia moving. Need to know more about before tax and after-tax super contribution caps and limits? If a member’s non-concessional c… An untaxed plan cap of $1.565 million 4 per super fund applies to the untaxed benefit in West State Super. The cap amount that applies is three times the non-concessional contributions cap for the financial year in which you make the contribution. Concessional contributions are before-tax contributions made into your super fund from a number of potential sources. Need to know more about before tax and after-tax super contribution caps and limits? JOIN LOGIN. 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