ATO Announced changes to Super Contribution Limits

The Australian Taxation office has released information around the contribution thresholds for superannuation members for the 2014-2015 income year.

The Key Changes are as follows and will have implication for clients who are salary packaging to superannuation and wish to maximise their contributions levels and is also good news for those over age 49.

The concessional cap will increase to $30,000 ($35,000 for those aged 49 or more on 30 June 2014).
The non-concessional contributions cap will increase to $180,000 (annually) and $540,000 over 3 years (under the ‘bring forward’ rules).
The low rate cap (for tax on super lump sum withdrawals under age 60) will increase to $185,000.

The Government Co-Contribution levels will remain a maximum of $500 contribution for those earning income under $34,488 per year and partial co-contributions will be payable for income earned up to $49,488 per year.

If you would like to review your strategies in the lead up to end of financial year contact our office.