How much can I contribute to Superannuation?

For the purposes of this post, we are assuming you have less than $1.4m in Super and you are younger than 67. If you don’t meet that criteria, feel free to contact me to schedule an appointment and discuss your options.

You and your employer can contribute up to $27500 each financial year and claim a tax deduction. These are called concessional contributions (CC). The Super fund pays 15% contributions tax on this. If you earn more than $250k you will also have to pay an extra 15% tax yourself on these contributions (called Div293 payments).

If you have less than $500k in Super you can utilise any unused balance up to the annual limit ($25k in earlier years) back for a total of 5 years including the current year. This system started in 2019. It’s a great way of getting an enlarged tax deduction and boosting your super quickly.

You can also contribute up to $110k per annum, or $330k every three years (so you can do a bigger lump sum early then wait a couple of years before another). There’s no tax deduction for this, but also no 15% contributions tax. These contributions are called Non-Concessional Contributions (NCC).

There is also a Downsizers Contribution, with a new starting age of 60, where you can place up to $300k each into Super when you change homes heading into retirement. No contributions tax, no tax deduction, but it’s another way of boosting your nest egg prior to retirement.

There are special tax concessions for business owners selling their business, so that you can very cost effectively get funds into Super. This is a specialist area and I recommend you speak with us before any sale, as there are also time limits we need to meet, and hoops we need to jump through.

We are an experienced SMSF accountant and recommend you speak with us about any tax matter and your financial adviser for any other matter relating to Superannuation.