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Super Contributions Cap: A Comprehensive Guide to Optimising Your Retirement Savings

Understanding the super contributions cap is crucial for maximising your retirement savings and avoiding potential tax penalties. You are only permitted to contribute a certain amount to your super fund each fiscal year without incurring additional taxes. The term “contribution caps” refers to these restrictions.

Your age and total super balance may also affect how much you can contribute to your super fund and whether the fund will accept that contribution.

All super funds have a cap on contributions. No matter how many super funds you have, all contributions are combined and applied to your caps.


Limit of Contribution to a Super

There are limits on how much you can contribute to your super set by the government, including contribution caps and the total super balance limit. If you exceed these thresholds, you might have to pay a higher tax rate.

The amount of super you can transfer into a Lifetime Pension or one of our Income accounts 

is also limited by a transfer balance cap.


Contribution Types Accepted by Super

Super contributions can be divided into two categories, each of which has a cap. Let’s look at how they both work and how much each type of contribution can add.

Contribution Types Accepted

Before-Tax Concessional Contributions

You only pay the “concessional” 15% tax on contributions made to your super because they are made without paying income tax. (Or 30% if your annual income plus super is more than $250,000).

  • Contributions required by law made by your employer
  • Amounts you designate as salary sacrifices
  • Personal contributions you made that you have claimed a tax deduction for
  • Contributions known as Notional Tax Contributions made to Defined Benefit Accounts
After-Tax Non-Concessional Contributions 

After-tax, personal, or voluntary contributions are other names for non-concessional contributions. The cap does not apply to downsizer contributions or COVID-19 re-contributions.

  • Money from your take-home pays that you add after income taxes have been subtracted.
  • Direct deposits of funds from your bank account
  • The contributions of your spouse
  • contributions that are made before taxes and go over the limit for concessional contributions
For 2022–2023: Super Contribution Cap

According to ATO, For the fiscal year beginning on July 1, 2022, the maximum contributions are shown in the table below.

Below is more information regarding the bring-forward and carry-forward rules:

Contribution type Cap from July 1, 2022 Total Tax Rate Paid
Concessional (before-tax) contributions $27,500 yearly


Additionally, any funds carried over since July 1, 2018 (the previous cap was $25,000).

Contributions are taxed at a rate of 15%. 

(or 30% if your combined annual income before taxes exceeds $250,000).

Non-concessional (after-tax) personal/voluntary contributions $110,000 yearly

See the bring-forward rules instead for a higher cap.

You cannot make contributions if your overall super balance is $1.7 million or more.

Although there is no contribution tax, regular income tax must still be paid.



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