Concessional contributions

Contributions into a superannuation fund which are taxed as income for the fund. They are taxed at the fund’s marginal tax rate. These are sometimes known as deductible contributions because the person paying the contribution into the fund, such as an employer, can claim a tax deduction for the payment. 

For the 2016/2017 year, the limit on concessional contributions was $30,000 per year ($35,000 for members aged 50 or older).

From 2017/2018, there is a broad-based cap of $25,000 per member per year. This cap can be averaged out over a five year period, such that the actual cap is more like $125,000 over a five year period. However, the average annual contribution cannot exceed $25,000 in any of those five years – meaning that you can make up for lower contributions in past years but you cannot ‘prepay’ contributions for future years. 



The Dover Group