Extra Tax on Super
Superannuation plays an important part in securing your lifestyle in retirement. Apart from the compulsory super contributions made by your employer (called ‘super guarantee’ or ‘SG’), you can contribute extra to your super fund at any time to help increase your savings for the future.
You can put in as much money as you like into your super, however there are limits on how much you can contribute before you pay extra tax.
The different caps depend on the type of contributions made into your super fund.
The cap amount and how much extra tax you have to pay depends on your age and whether the contributions are:
- Concessional (before-tax) contributions – Contributions from before-tax income, or for which a tax deduction has been claimed. They include employer and salary sacrifice contributions.
- Non-confessional (after-tax) contributions – These include personal contributions that have not been claimed as a deduction, spouse contributions and also contributions which exceeded your before-tax cap
The ATO’s factsheet Super contribution limits – what you need to know is available to download and print.
