Catch-up Concessional Contribution Caps

The ATO has released details of Catch-up concessional contribution caps to the effect from 1 July 2018.

New concessional contribution ‘catch-up’ measure

From 1 July 2017,  the maximum amount of concessional contributions you can put into your account each year will be $25,000 per annum for all age groups. Then commencing 1 July 2018, there is a new catch-up provision available for members with a superannuation balance of less than $500,000 just before the start of the financial year.

If your total superannuation balance is less than $500,000 amounts not paid up to the $25,000 cap each year will be able to be paid over the following five years. You can start catching up any unused concessional contributions from 1 July 2018. For example:

2018/19 2019/20 2020/21 2021/22 2022/23 2023/24
Concessional Contributions $10,000 $10,000 $10,000 $70,000 $10,000 $10,000
Available unused cap $15,000 $15,000 $15,000 $15,000 $15,000
Cumulative available unused cap $15,000 $30,000 $45,000 $15,000 $30,000

 

What it means for you

If your superannuation balance is less than $500,000 you may want to seek financial advice on your future contribution options.