The contribution cap changes are now in effect. Make sure you know what they are to avoid excess contributions tax in 2018 and beyond.
The reduced concessional contribution cap of $25k for everyone is now in full swing so it is important to keep an eye on how much you will be contributing this year. If you have a salary sacrifice arrangement in place be sure to review it before it is too late. Excess concessional contributions will be included in your assessable income and taxed at your marginal tax rate. There may also be an additional charge.
The non-concessional contribution cap has also reduced from $180k down to $100k. This of course has a flow on effect to the bring forward rule. Your ability to access the non-concessional contribution caps also depends on your member balance at 30 June of the prior year. Read our tips and traps blog to make sure you know your own cap: Tips & Traps – New Super Reforms
If you have any questions regarding your contribution cap please contact us here to discuss.
This information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs.