Concessional Contribution – Accountants Blackburn

With the release of Average Weekly Ordinary Time Earnings (AWOTE), concessional super contribution cap will increase from $25,000 per annum to $27,500 per annum from 1 July 2021 due to indexation. In addition, the non-concessional cap for FY2022 will increase from $100,000 to $110,000. Our local CLY Tax Accountants Blackburn can help you understand the way to make contributions to your super and improve your retirement life.

Common Concessional Contributions

  • Employer contributions such as compulsory employer contribution (super guarantee) or salary sacrifice arrangement made with your employer.
  • Personal contributions made by yourself, which you claim as an income tax deduction.

Detailed types of conceesional contributions can also be found on ATO’s website.

Concessional Contribution Cap

The concessional contributions cap has been $25,000 for each financial year since 1 July 2017. Due to the announcement of AWOTE figures for the December 2020 quarter, the concessional contribution cap for FY2022 has an increment of $2,500. As explained by ATO, any concessional contributions that are made above your cap would be included as your taxable income and taxed at your marginal tax rate. The excess concessional contributions charge may also apply.

Before 1 July 2017, different limits of concessional contributions were applied depending on your age. However, from 2018 financial year onwards, the limit is the same regardless of your age.

Tips to stay within your super contribution caps:

  • Being aware of your current caps
  • Keeping track of your super balance especially when your employer pays contribution to your super
  • If you think you may go over your concessional contribution cap, consider withdrawing or stopping contributions to your super. Please don’t hesitate to contact us for more information

If you want to seek assistance regarding how to maximize your retirement savings by making contributions to your super, our CLY Financial Planning and CLY Tax Accountants & Bookkeepers Blackburn can work together to help you with our professional accounting knowledge and services. We are also available for any assistance regarding your business needs including accounting, bookkeeping and tax return Blackburn.

If you need more information or want to make an appointment to discuss your situation in detail, please contact CLY Tax Accountants Blackburn. We are always ready and happy to help you get through this difficult time and assist you with all your tax return Blackburn and accounting needs.