How much can you invest in super this financial year?

Here are the superannuation contribution caps which apply for the 2014/15 financial year.

Contributions which qualify for a tax deduction

These are known as concessional contributions and the limit is aged based, as shown below. Generally you can only qualify for a tax deduction if you are self-employed.However employees can benefit as well by making a contribution through salary sacrifice.

The limit includes any Super Guarantee your employer pays on your behalf.

  Age         Tax deductible limit (2014/15)
Up to 49            $30,000
  50+               $35,000

Contributions which do not qualify for a tax deduction

You could also invest up to $180,000 p.a. in super as a non-concessional contribution (i.e. you do not receive a tax deduction on this contribution).If you are under age 65, you can ‘bring forward’ up to two years of non-concessional contributions. This means you could contribute $540,000 in one financial year, but you would not be allowed to make non-concessional contributions in the following two financial years.

The Government co-contribution

Currently, eligible workers earning up to $49,488 who make personal contributions to super can take advantage of the Government co-contribution of up to $500.

Spouse contributions

If your partner’s income is less than $13,800, you could qualify for a tax offset of up to $540 on the first $3,000 you contribute to superannuation for them from your after-tax income. This tax offset decreases as your partner’s income increases above $10,800.