Contributing to Super
Contribution Caps
Concessional contributions are those contributions that are made for you by the Company from pre-tax salary. They include Company contributions, superannuation guarantee contributions, voluntary Salary Sacrifice contributions and for some divisions, Notional Taxed Contributions (NTCs) and other company contributions.
Non-concessional contributions are contributions made to the Plan from after-tax salary.
The government applies caps on concessional contributions and non-concessional contributions.
Concessional Contribution Caps
The caps on concessional contributions are as follows:
| Year | age<50 | age 50 or more* |
|---|---|---|
| 2010/2011 | $25,000 | $50,000 |
| 2009/2010 | $25,000 | $50,000 |
| 2008/2009 | $50,000 | $100,000 |
| 2007/2008 | $50,000 | $100,000 |
*Members who are at least 50 on 30 June in the relevant year
Under the current legislation, the caps for people aged 50 or more are transitional caps and will cease at 30 June 2012 and are not indexed.
Tax on Concessional Contributions above the cap
Any concessional contributions above the cap will be subject to additional contributions tax at the rate of 31.5% (in addition to the 15% tax that is paid by the Plan).
Members must monitor the level of concessional contributions made to their superannuation arrangement(s). Neither the Plan nor the employer can do this on behalf of members. The Plan can accept contributions above the caps.
A notice of excess contributions will be provided by the ATO, requiring members to pay this additional tax. Members will have the option of either making a withdrawal from their superannuation account to meet this payment, or paying it directly to the ATO themselves.
Excess concessional contributions may not be refunded by the Plan.
Any concessional contributions above the cap will count against the non-concessional contribution limits (refer below).
Concessional Contribution Calculator
A concessional contribution calculator is available through the secure Member's Area of the website. The calculator determines the concessional contribution at a current date, including any NTCs applicable to defined benefit Divisions and some accumulation Divisions such as Division 5 and Division 10. The calculator can also project NTCs and other types of concessional contributions for the current financial year.
Non-concessional Contribution Caps
The non-concessional contribution caps are shown in the table below:
| Year | Cap Amount |
|---|---|
| 2010/2011 | $150,000 |
| 2009/2010 | $150,000 |
| 2008/2009 | $150,000 |
| 2007/2008 | $150,000 |
If you're under 65 years old
If you are 64 years old or less on 1 July of the financial year, you are able to bring forward the next two years of non-concessional contributions, but certain conditions apply. This effectively allows you to contribute up to three times the cap at once, or at any time during the three financial years.
If you're 65 years old or over
If you're 65 years old or over on 1 July of the financial year, your non-concessional contributions cap is $150,000 per year. You can not bring forward non-concessional contributions.
Additionally, if you're 65 to 74 years old, we can only accept non-concessional contributions if you satisfy the work test in each year a contribution is made.
To satisfy the work test, you must work for at least 40 hours during a consecutive 30-day period each financial year. The work test requires a person to be gainfully employed. Unpaid work does not meet the definition of gainfully employed.
Once you turn 75 years old, you are unable to make non-concessional contributions.
Tax on Non-concessional Contributions above the cap
Any non-concessional contributions (NCCs) above the cap will be taxed at the rate of 46.5%.
It is important that members monitor their own NCCs against this cap to minimise the amount of extra tax that could become payable. Neither the Plan nor the Company can do this on behalf of members. The Plan can accept contributions above the cap.
This tax will be payable by the Member who must withdraw this amount from their super account balance.
