Andrew from Vista Financial

Increase to Superannuation contribution caps

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    The maximum amounts that can be contributed to Superannuation are set to change from 1 July 2014.

     

    Currently the caps in place are as follows:

     

    Concessional contributions (Pre-tax contributions i.e employer and salary sacrifice contributions)

     

    • $25,000 each financial year ($35,000 if age 59 and over)

     

     

    Non - Concessional contributions (Post tax contributions i.e voluntary after tax contributions)

     

    • $150,000 each financial year ($450,000 using bring forward rule)

     

     

    The new caps set to be in place from 1 July this year are:

     

     

    Concessional contributions (Pre-tax contributions i.e employer and salary sacrifice contributions)

     

    • $30,000 each financial year ($35,000 if age 49 and over)

     

    Non - Concessional contributions (Post tax contributions i.e voluntary after tax contributions)

     

    • $180,000 each financial year ($540,000 using bring forward rule)

     

     

    The Non-Concessional contribution caps have implications in regards to UK Pension Transfers as generally a UK Pension Transfer falls within the Non-Concessional contributions category.

     

    This now means UK Pensions that were above $450,000 whose options were to either transfer and breach or transfer gradually over a number of financial years have some movement and potentially can transfer in one go if below $540,000 without breaching (assuming no contributions have been made in that financial year and the bring forward rule had not been triggered in the previous 2 financial years).

     

     

    Kind regards

     

     

    Andy

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