In the 2009 Federal Budget, the Government halved the concessional contribution limit for all super members. Concessional contributions include contributions your employer makes on your behalf and contributions you choose to make via salary sacrifice. In effect, the lower limit reduces the amount you can put into super before tax without being hit with higher tax. This means that it’s no longer a good idea to contribute large amounts in one go.
Previous limit |
Limit from 1 July 2009 |
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| If you are under 50 years | $50,000 per year | $25,000* per year |
| If you are 50 years or over | $100,000 per year until 30 June 2012 | $50,000** per year until 30 June 2012 |
* This limit is indexed to Average Weekly Ordinary Times Earnings. The limit will be increased in increments of $5,000 once the increase is greater than $5,000 ** This limit will not be indexed |
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You can take advantage of the tax concessions available through super, you may be able to choose your investment options and you can invest your retirement savings so they work for you over time.
Think about setting up a regular contribution plan. You could boost your retirement savings through salary sacrifice and save on the tax you pay at the same time. View the case study. Find out how a regular contribution strategy helped Anne boost her super savings.