There are two types of super contributions that are relevant today. They are concessional contributions (CCs) and non-concessional contributions (NCCs).

Concessional contributions

Essentially, these are super contributions that are made before tax, namely employer contributions which include both compulsory and salary sacrifice contributions and self-employed personal contributions, typically made by those who are sole traders or in a business partnership.

There is an annual cap that can be contributed which is dependent on the person’s age and the year in which the contribution is made.

Those who were 49 years of age or older on 30 June 16, the CC cap for 2016/17 is $35,000. Those younger than this group of people have a cap of $30,000 for 2016/17.

In the 2017/18 year and following years, everybody, regardless of age have a cap of $25,000.

Non-concessional contributions

In regards to the non-concessional contributions (NCCs), they are commonly called after-tax personal contributions. In other words, there is no tax deduction claimed on these.

The annual cap relevant for 2016/17 is $180,000 per person or $540,000 if bring forward the next 2 years worth in 2016/17. The cap applicable in 2017/18 and future years is $100,000 or $300,000 if bring forward 2 years worth in the one year.

As a result of the changes in superannuation due to come into effect on 1st July 2017, you cannot make any further NCCs if your super balance was $1.6m on 1st July 2017. However, the old rules apply before 30 June 2017 and thus, you can still put in $540,000 if you wish.

Note there are transitional rules that apply if you have already had triggered bring forward cap (i.e. contributed more than the annual cap of $180,000) in either 2014/15 or 2015/16 years.

Another issue to note is the work test that still applies if you are 65 years or older. That is, you must have worked 40 hours in a period of 30 consecutive days at anytime during the year when the concessional or non concessional contribution is made.