Changes to Superannuation Caps
The concessional super contributions cap has increased to $35,000 for:
the 2013-14 financial year - for individuals turning 60 years or older
the 2014-15 financial year - for individuals turning 50 years or older.
The general concessional cap for everyone else remains at $25,000 in 2013-14.
The higher cap of $35,000 replaces the previously announced cap that was to apply from 1 July 2014 for individuals aged 50 years and over with superannuation balances below $500,000.
Excess concessional contributions made on or after 1 July 2013 will be included in an individual’s assessable income and taxed at their marginal tax rate (plus an interest charge) rather than at the top marginal tax rate.
To assist individuals in paying the additional tax bill and charge, they can release up to 85% of their excess concessional contributions from their super fund. Members will also receive a non-refundable tax offset of 15% of their excess concessional contributions. When an amount is released from the fund, it will no longer be counted as non-concessional contributions.
The existing refund of excess concessional contributions measure now only applies to excess contributions made in the 2011-12 and 2012-13 financial years.
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