Increases in concessional and non-concessional caps

The concessional contributions general cap will rise $5,000 to $30,000 in 2014-15, the Australian Taxation Office has confirmed.

It is the first increase since 2008-09.

The concessional contributions cap will be temporarily increased to $35,000 from July 1, 2014 for people over the age of 49 on June 30, 2014. For people under 49 on June 30, 2014, the concessional cap will be $30,000, a $5,000 increase from the current cap.

The temporary higher cap is not indexed and will cease when the general concessional contributions cap is indexed to $35,000.

The annual non- concessional cap has been increased from $150,000 to $180,000. Nonconcessional contributions are not subject to the 15%. People under 65 years of age can make the non-concessional contributions of up to three times the non-concessional cap over a three-year period ie, a $540,000 contribution in advance of the next three years.

People over the age of 65 and satisfying the “work test” can make a non-concessional of $180,000 per year. This can be a complex area for people about to turn 65, so financial advice is recommended.

This publication was issued by First Super Pty Ltd (ABN 42 053 498 472, AFSL 223988), as Trustee of the First Super superannuation fund (ABN 56 286 625 181). It does not consider your personal circumstances and may not be relied on as investment advice. Content was accurate at the date of issue, but may subsequently change. You should contact us on 1300 360 988 for updated information and to obtain a copy of the product Disclosure Statement.