Superannuation don't exceed new limits
From 1 July 2009 the concessional contribution cap was halved to $25,000 per person per annum (or $50,000 per person if the member is over 50 years of age).
The concessional contributions cap of $25,000 is not separate from the superannuation guarantee requirements, so you need to ensure that you include the nine per cent Superannuation Guarantee Contributions (SCG) in your calculations.
Employers that pay their employee's April to June 2009 superannuation contributions in July 2009 need to include these contributions in the $25,000 cap limit for the 09/10 financial year. That means, while you may have reduced your contributions you could still exceed the cap.
For example: If in the 08/09 financial year you earned $75,000, your SCG at nine per cent would have been $6,750. The remaining $43,250 could have been salary sacrificed to make up the $50,000 limit.
From 1 July 2009 you would need to reduce your salary sacrifice amount to ensure you remain under the new $25,000 cap.
However if your employer makes contributions quarterly the actual contributions the superfund receives in the 09/10 financial year would be as follows:
- April – Jun 09 contribution (paid in July) $12,500
- July 09 – March 10 contributions (at reduced rate) $18,750
- Total contributions received 09/10 financial year $31,250
This exceeds the new concessional contribution cap by $6,250. The additional tax payable for exceeding the contribution cap is $1,968.75.
So beware and ensure you don’t inadvertently exceed the cap in 2010.
Talk to your ARW Chartered Accountant if you have concerns.