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Pension Product Disclosure Statement (PDS)

 

 

Pension PDS -  Product Disclosure Statement Account-based Pension and Transition to Retirement Account-based Pension


   Your Contribution Caps



Concessional (general cap)

Non-concessional cap

2017-18*

$25,000**

$100,000

2016-17*

$30,000/$35,000**

$180,000

Tax on amounts over the cap

Included in your income tax return and taxed at your marginal rates.

46.5%***

Tax on amounts over the cap

31.5%

46.5%

·    ·  

  • * For the 2013-14 financial year, the concessional cap for individuals who are 59 years old or over on 30 June 2013 is $35,000. For the 2014-15 financial year, the concessional cap for individuals who are 49 years old or over on 30 June 2014 is $35,000. 
  • ** There is 15% tax payable by your fund on concessional (before-tax) contributions paid into a super fund. Your super fund usually reduces your super account by your share of this tax.
  • *** From 1 July 2014 the tax rate applicable to excess super contributions will increase in line with the changes to the Medicare levy. For the 2014-15 financial year, the applicable tax on excess non-concessional contributions will be 47%.
  • From 1 July 2014, the general concessional (before-tax) contributions cap will be indexed in line with average weekly ordinary time earnings (AWOTE), in increments of $5,00
  • For the 2011-12 and 2012-13 financial years only, if you have gone over your concessional (before tax) contributions cap by $10,000 or less, you may receive a once only offer to have the excess concessional (before tax) contributions refunded to you and assessed at your marginal tax rate, rather than pay excess contributions tax.
  • Any contributions over the concessional (before-tax) contributions cap will count towards your non-concessional (after tax) contributions. However, from 1 July 2013, the amount of your concessional contributions that are counted towards your non-concessional contributions cap can be reduced if you elect to release an amount of your excess concessional contributions. If you have more than one super fund, contributions made to each fund will count toward your caps.
  • End of attention
  • If you contribute more than your annual non-concessional contributions cap and you are under 65 years old, you can bring forward two years of contributions - see Bring-forward provision for people under 65 years old.
  • If your contributions are over the non-concessional (after-tax) contributions cap amount, you will be subject to excess non-concessional (after-tax) contributions tax.

Non-concessional (after-tax) Contribution 

Non-concessional contributions may also be referred to as 'after-tax contributions'. Types of non-concessional (after-tax) contributions include:

o    non-concessional (after-tax) contributions that you or your employer makes on your behalf from your after-tax income

o    contributions your spouse (including a same-sex spouse) makes to your super fund, unless your spouse makes the contributions because they're your employer

o    personal contributions that are not claimed as an income tax deduction

o    excess concessional (before-tax) contributions that you have not elected to release from your super fund

o    contributions in excess of your capital gains tax (CGT) cap amount

o    retirement benefits you withdraw from your super fund and 're-contribute' to super

o    most transfers from foreign super funds, including New Zealand KiwiSaver contributions but excluding amounts included in your fund's assessable income.

Your age affects the amount of the non-concessional (after-tax) contributions cap, how the cap applies and what options you may have - see Your age and super contributions caps.

Exclusions

Some personal contributions may be excluded from counting towards your non-concessional (after-tax) contributions cap for a financial year. Some of the exclusions include contributions:

o    made from personal injury payments

o    you have chosen to count towards your CGT cap amount that have not gone over your lifetime limit.

These types of non-concessional (after-tax) contributions will only be excluded if you meet all of the conditions. You must also specifically ask your fund to exclude them by providing your fund with a Capital gains tax cap election or Contributions for personal injury form before or when you make a contribution.


 

 

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