There is a limit on the amount of concessional contributions you can make into super each financial year. You can contribute up to $25,000 regardless of age in the 2018-19 financial year.
From 1 July 2018, you can make ‘carry-forward’ concessional super contributions if your total superannuation balance is less than $500,000 at 30 June of the previous financial year.
If you’re eligible, you’ll be able to access unused concessional contribution cap amounts on a rolling basis for five years. After five years any unused carry forward amounts will expire.
You can begin accruing unused amounts from 1 July 2018. This means you’ll be able to access and carry forward unused amounts for the first time in the 2019-2020 financial year.
Any contributions you make over the cap are included in your personal assessable income and are taxed at your marginal tax rate (with an entitlement to a 15% non-refundable tax offset). If you exceed the cap, the ATO will let you know and you can withdraw up to 85% of your excess contributions (for a financial year) from your super.
The transfer balance cap applies to the total amount of super that can be transferred into the retirement phase tax free. For the 2019-20 financial year the total amount of super that can be transferred into the retirement phase tax free is $1.6 million.
The cap will be indexed in $100,000 increments in line with the consumer price index (CPI). Individuals who breach the cap will be subject to additional tax.