Contribution (concessional) limits
There are limits on how much you can contribute to your super.
Concessional contribution limits 2021 - 2022
- For the 2021 - 2022 financial year, the concessional cap is $27,500 for all individuals regardless of age.
Calculating your concessional contributions
Salary sacrifice is considered as a “concessional” contribution. Concessional contributions include:
- Salary sacrifice
- 10 % Super Guarantee (SG) payments made by your employer
- A personal contribution for which you make an income tax deduction claim
If you are wanting to salary sacrifice you will need to take into consideration the concessional contributions made by your employer and any other personal contributions (after-tax) for which you plan to claim an income tax deduction, to ensure you stay within the concessional tax limits.
Exceeding the concessional contribution limit?
If you have a total super balance of less than $500,000 from the previous financial year, you can carry-forward any unused concessional caps on a rolling 5-year basis.
This means if you don’t contribute the maximum annual allowable amount into your super, you can increase your contributions in following years by those unused amounts (for a maximum of five years, after which they will expire) by using the carry-forward rule
This rule applies from 1 July 2018. This means that the 2020 financial year is the first year in which you can top-up your super contributions by the carry forward amount.
For more information regarding contributions caps visit the ATO website.