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What is the Contribution Cap for my Self Managed Superannuation Fund (SMSF)?

It is imperative for all members/ trustees to understand the concessional and non-concession contribution caps for an income year.

 

Concessional Contribution Cap

 

Concessional contributions include employer contribution and personal contributions claimed as a tax deduction by a self employed person.

 

For the 2013-14 income year the amount of concessional cap is $25,000.

 

For individuals aged 59 and over at 30 June 2013 and 49 and over on 30 June 2014, the concessional cap has been temporally increased to $35,000.

 

Non-Concessional Contribution Cap

 

Non-concessional contributions include contributions from after tax income. These include:

  • Personal contributions that have not been claimed as a deduction
  • Spouse contributions
  • Contributions which exceeded your before-tax cap

 

The non-concessional cap for 2013-14 is $150,000.

 

It is extremely important not to exceed the concessional and non-concession cap and avoid paying extra tax at your marginal tax rate.

 

If you have a question in regards to contribution caps in your SMSF, please give Redwood Advisory a call on 1300 790 110.

 

Ivan Filipovic – Director Redwood Advisory- SMSF Specialists.

 

The content has been prepared without taking account of the objectives, financial situation or needs of a particular individual and does not constitute financial product advice.

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Ivan Filipovic

Ivan Filipovic is an experienced, independent Property, SMSF and Finance Expert and the founder of Redwood Advisory. Ivan has been educating and coaching investors for over 15 years and has built a successful property portfolio with a number of positive geared properties across Australia.  Ivan provides valuable and honest guidance by educating Australians on how to invest successfully protect yourself with knowledge, contact Ivan today for a complimentary consultation on 1300 790 110 or email ivan@redwoodadvisory.com.au

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