Is there a limit on the amount that can be contributed?

There are limits on the amount of pre and post-tax contributions you can make to your account.

Limits on pre-tax contributions
The pre-tax contributions cap for the current financial year is $25,000 pa per person. Contributions included in the cap are:

  • employer Superannuation Guarantee (SG) contributions
  • salary sacrifice contributions
  • pre-tax contributions to defined benefit arrangements
  • pre-tax contributions made to your account and split to your spouse under the Contribution Splitting rules
  • Transitional Termination Payments (TTPs) amounts in excess of $1 million
  • insurance premiums paid directly by your employer may also be included
  • all your pre-tax contributions to all your super funds.

If you have supplied your super fund with your Tax File Number (TFN), any pre-tax contributions will be taxed as follows:

  • any contributions within the pre-tax cap: taxed at 15%
  • any contributions that exceed the pre-tax cap: taxed at 45% (plus Medicare levy).

If you do not supply your TFN to your super fund, all pre-tax contributions will be taxed at 45% (plus Medicare levy).

Transitional arrangements 2009/2010 to 2011/12
 During this period the pre-tax contributions cap for persons aged 50 years and over will be $50,000 pa per person.

In the 2011 Federal Budget, the Government reaffirmed its commitment to the permanent extension of the transitional pre-tax contributions cap for those over 50 with account balances of less than $500,000 commencing 1 July 2012.

Limits on post-tax contributions
The post-tax contributions cap for the current financial year is $150,000 pa per person. Contributions included in the cap are:

  • post-tax contributions you make to your super
  • post-tax contributions made to your account by your spouse
  • pre-tax contributions in excess of the pre-tax contributions cap
  • transfers from overseas.

If you are aged under 65 years, you will be able to bring forward two years of post-tax contributions and make a lump sum contribution of $450,000 in one financial year. So if you made a $450,000 contribution during the 2011/2012 financial year, you would not be allowed to make any further post-tax contributions until the 2014/2015 financial year.

If you are aged 63 or 64 you are able to bring forward two years of contributions without meeting the work test in the subsequent two years. If you are aged 65 years or over you cannot bring forward contributions.

If you have supplied Telstra Super with your TFN, any post-tax contributions will be taxed as follows:

  • no tax applicable up to the $150,000 pa post-tax cap
  • any contributions that exceed the post-tax cap are taxed at 45% (plus Medicare levy).

Post-tax contributions are not accepted if you have not supplied your TFN to your super fund.