What is the concessional contribution cap for super in 2024-25?

The concessional (before-tax) contribution cap for superannuation in the 2024-25 financial year is A$30,000 per person. This cap applies to all concessional contributions combined, including:

• Employer contributions (super guarantee, salary sacrifice amounts)
• Personal deductible contributions (contributions you make and claim a tax deduction for)

Concessional contributions are taxed at a flat rate of 15% inside the super fund, which is generally lower than your marginal tax rate.

Carry-forward unused cap amounts:

Since 1 July 2018, you can carry forward unused concessional cap amounts from up to 5 previous financial years, provided your total super balance was less than A$500,000 at 30 June of the previous year. This allows you to make larger concessional contributions in a single year.

Exceeding the cap:

If you exceed the concessional cap, the excess amount is:

• Included in your assessable income and taxed at your marginal tax rate
• You receive a 15% tax offset (since the fund already paid 15% tax on it)
• An interest charge is applied based on the shortfall interest charge rate
• You can elect to release up to 85% of the excess from your super fund to pay the additional tax

Non-concessional (after-tax) contributions have a separate cap of A$120,000 per year for the 2024-25 year, with a bring-forward rule allowing up to A$360,000 over three years if you are under age 75.