Changes to superannuation back in 2007 were supposed to make super “simple”. It’s better described these days as a minefield.

Superannuation contribution limits are a moving beast. They constantly change and if you are contributing to super you need to ensure you are abreast of the changes otherwise they may come back to bite you.

There are two methods of contributing to super.

Concessional contributions:
Also known as pre-tax, or taxable contributions. Examples are:
 Employer superannuation guarantee (SG) contributions.
 Salary sacrifice (pre-tax amounts contributed over and above SG).
 Personal tax-deductible contributions (self-employed).

Non-Concessional contributions:
Also known as post-tax, or tax free contributions. Examples are:
 Contributions made to super after tax has been paid.
 The net sale of an asset, such as a property, or a lump sum of cash that has had tax paid on it.

Contribution limits for 2013-2014:

Concessional contribution Limits:

Non-Concessional Limits:

*A member can bring forward to future years of contributions to make a lump sum payment of $450,000. The member is then unable to make another non-concessional contribution for three years.

**To satisfy the employment test a member must have worked 40 hours in any one 40 day period and only once during the year.

Contribution limits for 2014-2015:

Concessional contribution Limits:

Non-Concessional Limits:

For the most part, the changes in the limits from 2013-2014, to 2014-2015, relate to indexation. If you have previously been maximising your concessional super contributions, there may be opportunities to increase your salary sacrifice and maximise the tax benefit. However, ensure you do not exceeded your contribution limits.

Utilising the non-concessional is not always as easy as it looks. If you are nearing 65 years of age and have a large sum of money to contribute to super, using the bring forward rule immediately may not be most beneficial.

It is important to view contributing to super as only one piece of the bigger puzzle. Issues around asset allocation, investment, and pension strategies can also come into play and need to be part of your broader financial plan.

Hewison Private Wealth Advisers are market leading experts in superannuation strategies. As an existing client or prospective client, if you believe there are opportunities for you in this area I recommend contacting our office to arrange a meeting.