IMPORTANT INFORMATION

This important information relates to many members super accounts; their circumstances may be different from yours. If you are in doubt about whether or not a particular provision applies to you or if you simply would like further information, please call us on 1800 682 626.

It is important for you to consider your own personal financial circumstances, objectives and needs (your needs). We do not consider your needs. If you would like someone to help consider your needs before making additional contributions you should speak with a licensed or appropriately authorised financial adviser, to speak with an Equip financial adviser please call us on 1800 682 626.

CONTRIBUTION CAPS

Annual caps apply to contributions to your super. Contributions over these caps are subject to additional tax.

Contribution tax

The Government taxes employer and salary sacrifice contributions (if applicable to your circumstances) at a rate of 15% tax. If you exceed your contribution cap you may be charged a higher tax rate by the government.

The Government also applies a rate of 15% tax on any after tax contributions for which you claim a personal tax deduction. You should consult a licensed financial advisor for assistance with what tax rates may apply to your personal circumstances.

Caps on concessional contributions

Concessional contributions include employer and salary sacrifice contributions and some other contributions and allocations from reserves.

The cap for the current financial year is:

$30,000 for all ages.

From 1 July 2019, individuals may be allowed to exceed their annual concessional contribution cap in a given financial year. In order for this provision to apply, their Total Superannuation Balance on 30 June immediately prior to the start of that financial year must be less than $500,000 and they must have unused amounts of concessional contribution cap from within the previous 5 years. Only unused amounts from 1 July 2018 onwards will be considered. If these provisions apply, unused concessional cap amounts from eligible prior years will be available to be used where the current year cap is exceeded, avoiding any excess contribution assessment.

Caps on non-concessional contributions

The caps per financial year are:

$120,000, or

$360,000 in three years subject to age limits#.

* To accommodate larger contributions, an eligible person may generally ‘bring forward’ two financial years' of non-concessional contributions - thus being able to make up to $360,000 of non-concessional contributions within 3 years. An eligible person who makes a non-concessional contribution in excess of $120,000 in a financial year automatically triggers this ‘bring forward’ provision. Please visit the www.ato.gov.au for more information on contribution caps and applicable age limits

Once you trigger the bring-forward arrangement:

  • any change to the non-concessional contributions cap for the bring-forward period doesn’t apply to you. The bring-forward cap amount is based on the cap in the first year of the period.  
    • For example, if the non-concessional contributions cap in the second and third year of a bring-forward period changed to $120,000 due to indexation, your non-concessional cap will still be $330,000 ($110,000 × 3 years) and not $350,000 ($110,000 + $120,000 + $120,000).

The non-concessional contributions reduces to $0 for any given financial year, where the individual held a Total Superannuation Balance of $1.9m or more on 30 June immediately prior to the start of that financial year. In addition, the bring-forward provision allowable in any given financial year is also limited based on your Total Superannuation Balance (TSB) on 30 June immediately prior to the start of that financial year in the following way:

If your Total Superannuation Balance is less than $1.66m, you can use the full three-year bring forward to make a $360k contribution.

If your Total Superannuation Balance is between $1.66m and $1.78m, you can only bring forward one additional year of caps, to make a $240k contribution.

If your Total Superannuation Balance is between $1.78m and $1.9m, no bring forward is available and you can only contribute $120k.

Above $1.9m Total Superannuation Balance, the cap reduces to $0 and contributions of this type cannot be made.

If you're a high income earner, you might need to pay more tax. 
If you earn an income of more than $250,000 a year:

You may need to pay a further 15% on some or all of your employer contributions, salary sacrifice contributions and other taxable contributions.

Income for this purpose generally includes your normal taxable income, plus your reportable fringe benefits and your concessional superannuation contributions.

If your income is less than $250,000:

The additional tax will apply only to those contributions which take your income over $250,000.

For example, if you earn $230,000 and you contribute $50,000 after tax, the additional tax will only apply to $30,000.

For confirmation of your year to date contributions in your account with us, please call 1800 682 626.