Before contributing extra to your super it's important to know that limits apply to the amount you can contribute to your super. So you should review all the super contributions you make, to make sure you stay within the caps. Your ability to make extra contributions may also be restricted by your age.

The rules around contributing

The Government has set contributions caps (limits) on the amount of contributions you can make to all funds you participate in each financial year. Additional tax can apply to both your concessional (before-tax) and non-concessional (after-tax) contributions if you exceed the applicable caps.

Concessional (pre-tax) contributions

Can include:

• Compulsory contributions paid by your employer – such as the super guarantee

• Additional or voluntary employer contributions including salary sacrifice contributions for administration fees and insurance premiums paid by the employer

• Personal contributions for which you claim a tax deduction

• Notional taxed contributions if you are a member of a defined benefit fund

• Salary Sacrificed contributions

Please see the ATO website for the current contributions caps.

If you have a total superannuation balance of less than $500,000 at 30 June of the previous financial year, you may be entitled to contribute more than the general concessional contributions cap amount using the carried-forward amounts of your unused concessional contributions from 1 July 2018. The first year you will be entitled to carry forward any unused amounts is the 2019-20 financial year. Any unused concessional contributions are available to you for a maximum of five years.

If you exceed the concessional contribution limits you may have to pay a extra tax on the excess amounts. Check out the ATO website for more information on what happens if you go over your concessional contributions cap and how any tax can be paid. The ATO will send you an assessment notice about this.

You can check contributions that count towards your caps by logging into Vision Online. This will only show the contributions that have been received by Vision Super. If you have another fund that is receiving contributions they will need to be considered.

Non-concessional (after-tax) contributions

Can include:

• Personal contributions that you make from your after-tax income (for which you don’t claim a deduction)

• Contributions your spouse makes to your super fund

• Contributions in excess of your concessional contributions cap.

Please see the ATO website for the current non-concessional contributions caps.

Non-concessional contributions are capped at four times the concessional contributions cap.

If you exceed the non-concessional contribution limits you may have to pay an extra tax on the excess amounts. The ATO will send you an assessment notice advising you of the additional tax, how to pay it and whether you are eligible to apply for a refund of your excess contributions.

Members under 75 years of age may be able to make non-concessional contributions of up to 3 times the annual non-concessional contributions cap in a financial year.

Other limits on super contributions

The table below highlights the types of contributions you (or your spouse) can make to your superannuation fund and the age at which you can make them (or receive spouse contributions). In some situations, a work test applies. Outside these limits the fund may have to refund your contribution or you may have to pay extra tax to the ATO.

* Generally, to claim a tax deduction on personal contributions from age 67 - 74, you need to have been gainfully employed at least 40 hours in a period of not more than 30 consecutive days during the financial year in which the contribution is made. This is known as the work test. The work test does not apply to downsizer contributions.

Members aged between age 67 – 74 with a total superannuation balance of less than $300,000 will be exempt from the work test for a 12-month period. These members are able to claim a tax deduction on personal contributions made in the 12 months from the end of the financial year in which they last met the work test. The exemption is only available for one 12-month period in an individual’s lifetime.

** After age 74, only mandated employer and downsizer contributions can be accepted for you. Salary sacrifice contributions cannot be accepted.

*** Contributions other than mandated employer contributions and downsizer contributions can be made within 28 days after the end of the month in which a member turns 75.