Superannuation Concessional Contributions Caps Reduced

The Superannuation concessional contributions (tax deductible) contributions have been reduced 1 July 2009.

The concessional contributions cap has been halved to $25,000 a year from its current limit of $50,000.

A reduction will also apply to the transitional concessional contributions threshold for persons aged over 50 years of age from its current annual level of $100,000 to $50,000 per year. The transitional concessional cap of $50,000 will apply up to the 2011/12 financial year. After this time, it will reduce to $25,000 also.

The government has ruled out any reduction to the non-concessional caps (personal contributions) at this time, stating that they remain at $150,000 (indexed).