Increase to Superannuation contribution caps

[Andrew Williams]

The maximum amounts that can be contributed to Superannuation are set to change from 1 July 2014.

 

Currently the caps in place are as follows:

 

Concessional contributions (Pre-tax contributions i.e employer and salary sacrifice contributions)

 

 

• $25,000 each financial year ($35,000 if age 59 and over)
  

 

 

 

Non - Concessional contributions (Post tax contributions i.e voluntary after tax contributions)

 

 

• $150,000 each financial year ($450,000 using bring forward rule)
  

 

 

 

The new caps set to be in place from 1 July this year are:

 

 

Concessional contributions (Pre-tax contributions i.e employer and salary sacrifice contributions)

 

 

• $30,000 each financial year ($35,000 if age 49 and over)
  

 

 

Non - Concessional contributions (Post tax contributions i.e voluntary after tax contributions)

 

 

• $180,000 each financial year ($540,000 using bring forward rule)
  

 

 

 

The Non-Concessional contribution caps have implications in regards to UK Pension Transfers as generally a UK Pension Transfer falls within the Non-Concessional contributions category.

 

This now means UK Pensions that were above $450,000 whose options were to either transfer and breach or transfer gradually over a number of financial years have some movement and potentially can transfer in one go if below $540,000 without breaching (assuming no contributions have been made in that financial year and the bring forward rule had not been triggered in the previous 2 financial years).

 

 

Kind regards

 

 

Andy