Tips to avoid exceeding the concessional contribution cap

Be aware what your concessional contribution cap is before each 30th June.

If you go over the cap ($ 25,000), you may have to pay extra tax.

Check when your employer pays the contributions and when they were received by your super fund – contributions count towards a cap in the year your super fund receives them.

Practical check of applying the limit for employers and employees:

You need to recalculate the payments done and not always the Financial year 1.7 to 30.6 concerned.

  • If you have paid / received last April to June quarter in July last year, this will count on your limit this year.
    In this case it can be worthy to pay also this April – June in July to differ it similarly to next year if you have already reach the limit of $25,000.
  • If you have paid / received last April June quarter before the 30th June, make sure your fund receives all your contributions by 30 June

If you think you may go over your concessional contributions cap in the current financial year:

  • stop or reduce any before-tax voluntary contributions to your super
  • however, your employer can't change compulsory super guarantee amounts or amounts paid under a contract or industrial agreement
  • delay making any personal super contributions you intend to claim as a deduction in your tax return.