Contribution Rules

This Fact Sheet covers to issues surrounding the rules that apply to contributions being made to a super fund. It covers only the rules dealing with contributions by or on behalf of members and does not cover the tax deduction provisions available to employers and to some members. The rules now in place are based on the age of the member.

Under 65

No restrictions of any kind on the fund trustee accepting contributions. Tax deductions by employers carry additional restrictions. Tax deductions by members subject only to the requirements of the “10% rule”. Please ask for details of that rule.

65 But Under 75

Mandated contributions are okay. Other personal or employer contributions are subject to the work test. The member must work for at least 40 hours during a 30-day period. Contributions can only be made after this test is passed. Tax deductions by members are possible, subject to the requirements of the “10% rule”.

Contribution Limits

Although the trustee can accept contributions, there are upper limits on contributions such that, if the limits are exceeded, there may be a tax cost to the member. Limits apply to deductible contributions (concessional) as well as undeducted contributions (non-concessional).

Concessional Limits

Concessional contributions are limited to $25000 per annum per member, except for members 50 and over (under 75). That limit is $50000.

Non-Concessional Limit

Non-concessional contributions are limited to $150000 per annum per member, up to just prior to turning 75. It is possible to bring three years together, if the member is under 65, meaning an effective limit of $450000.

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