There are caps on the amount that can be contributed to your super without incurring additional tax.
Each cap applies per person, regardless of how many super funds or accounts you contribute to or how many employers you have. It is your responsibility to ensure that you do not breach the caps if you want to avoid paying extra tax.
Concessional contributions cap
- For 2018-19, a cap of $25,000 (gross of tax) per financial year applies for concessional contributions, regardless of your age.
Non-concessional contributions cap
- For 2018-19, a cap of $100,000 per year applies for non-concessional contributions (including any excess concessional contributions) if you have a super balance of less than $1.6 million. No tax applies to contributions up to this cap.
- If your total super balance is $1.6 million or more, your non-concessional contributions cap will be nil for the financial year. In this case, any contributions you make for that year will be excess non-concessional contributions.
NOTE: There are several other important considerations with contributions caps. Please refer to the Reference Guide: Boost your super for more details.