With a change of government and the ever evolving superannuation environment, I would like to bring your attention to the new concessional contribution caps.
For 2013/14 financial year
For those aged 60 and over, the concessional contribution cap is $35,000 p.a.
This applies to those that are turning 60 during the 2013/14 financial year. For example: Jill has her 60th birthday on 17th January 2014, therefore she is eligible to utilise the $35,000 concessional cap for the entire financial year (i.e. this is not pro-rated).
If you are younger than 60, the concessional contribution cap remains at $25,000 p.a.
From 1 July 2014
The $35,000 concessional contribution cap applies to those who are aged 50 and over.
Indexation of concessional contribution cap
The $25,000 concessional contribution cap is indexed to Average Weekly Ordinary Time Earnings (AWOTE) in $5,000 increments. The indexation is currently frozen until 1 July 2014 when it is expected to increase to $30,000 p.a.
If you would like to discuss what your concessional contribution cap is, please call our office on 8071 0306.