From 1 July 2017, the government has replaced the over-50s concessional contributions cap of $35,000 with a $25,000 cap. It has also reduced the general concessional contributions cap (for the under-50s) to $25,000, from its current $30,000 limit.

A concessional contribution is a before-tax super contribution, and can include an employer’s Superannuation Guarantee contribution, a salary sacrificed super contribution, or, for the self-employed or not employed, a tax-deductible super contribution.

In decreasing the concessional caps, the government has made one allowance; from July 2018 onwards, if the annual concessional contributions cap of $25,000 is not used, then the unused portion can be carried forward for up to 5 years. HOWEVER:-This is based on the provision the Super Fund has a balance of less than $500,000.

For more information on the ability to carry forward unused concessional contributions cap amount and how these changes may affect your situation, please contact our trusted advisers for a chat.

Exclusive New Client Offer

Contact our team today to get a FREE 30-minute meeting with one of our expert business accountants, including an ADDITIONAL free Financial Safety Checklist to help you on your journey to financial freedom.