IMPORTANT INFORMATION FOR ADVISERS
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DISCLAIMERS
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This document has been prepared by Colonial First State Investments Limited ABN 98 002 348 352, AFS Licence 232468
(Colonial First State) based on its understanding of current regulatory requirements and laws as at 3 June 2015. While all care
has been taken in the preparation of this document (using sources believed to be reliable and accurate), to the maximum
extent permitted by law, no person including Colonial First State or any member of the Commonwealth Bank group of
companies, accepts responsibility for any loss suffered by any person arising from reliance on this information.
This document does not take into account any person’s individual objectives, financial situation or needs. You
should read the relevant Product Disclosure Statement (PDS) before making any recommendations to a client.
Clients should read the PDS before making an investment decision and consider talking to a financial adviser.
A guide to super contributions
Super may be one of the most tax-effective ways to build your retirement
savings and contributing even a little bit of money may go a long way.
For example, a 50 year old earning $90,000 pa before tax with a super balance of
$120,000 could end up with $59,662 more in their super by the time they turn 70 if they
contributed 3% of their salary each year. That’s just $52 a week before tax – which is
equal to around $32 from their take home pay.1
However, it’s possible to contribute too much during a financial year, which may see you
paying more tax than anticipated. The government has set annual limits – known as
contributions caps.
Once you know the caps, you can take advantage of the tax concessions of contributing
to super. The different caps depend on your age and the type of contributions made into
your super fund. The two main types of contributions are concessional contributions
and non-concessional contributions.
1. Concessional (before-tax) contributions

Concessional contributions are before tax contributions that go into your super
fund before you pay tax on them. Concessional contributions include compulsory
Super Guarantee (SG) contributions, salary sacrifice payments and personal
deductible contributions, such as super payments you make if you’re selfemployed.

Annual contributions are capped at $30,000 and are generally taxed at 15% in
your super fund. If you turn 50 years or older2 any time in the 2015-16 financial
year, the cap increases to $35,000.
If you go over these limits, your excess contributions are taxed at your marginal
tax rate (plus an interest charge). They will also be counted towards your nonconcessional (after-tax) contributions cap unless you elect to withdraw them.
2. Non-concessional (after-tax) contributions
1
ASIC’s MoneySmart Superannuation Calculator contribution fees of 1% and management costs of .50%. Calculation assumes
a 7.3% return with an average of 8% tax on earnings, insurance premiums of $100 per year and inflation of 2.5% pa.
Calculation made on 16/04/15.
2 A higher cap of $35,000 applies if you were aged 49 or over at 30 June 2015.

Non-concessional contributions are made to your super after you’ve already paid
tax on them. Your take home pay or savings when no tax deduction has been
claimed and certain contributions made for you by your spouse are all nonconcessional contributions.

Annual contributions are capped at $180,000, but if you want to contribute more
and you’re under 65 years of age at any time during the 2015-16 financial year,
you may want to take advantage of the ‘bring forward’ rule. This allows you to
bring forward your non-concessional contributions for the year with the next two
years’ worth of non-concessional contributions. Keep in mind that there is an
overall cap of $540,000.

Contributions exceeding the non-concessional contributions cap are taxed at
49%. However, you generally have the option of withdrawing any excess nonconcessional contributions. 85% of an associated earnings amount must also be
withdrawn, with 100% of the earnings amount taxed at your marginal tax rate
(less a 15% tax offset).
Type of contribution
Cap
Concessional (beforetax)
Under age 50 for all of
the 2015-16 financial
year: $30,000
Age 50 or over3 any time
during 2015-16 financial
year: $35,000
Under age 65 any time
during the 2015-16 year:
$180,000 or up to $540,000
over a three-year period
(‘bring forward’ rule)
Non-concessional (aftertax)
Age 65 or over for all of
the 2015-16 financial
year: $180,000
Tax on excess
contributions
Your marginal tax rate (plus
an interest charge)
If withdrawn, 100% of
associated earnings taxed
at your marginal tax rate
(less a 15% tax offset).
If not withdrawn, excess
contributions taxed at 49%.
Check your eligibility to make voluntary super contributions
3

If you’re between age 65 and 74, you need to pass a work test before you can
contribute to your super. This means you must have worked at least 40 hours
within 30 consecutive days in the financial year.

If you’re age 75 or over, you are unable to make voluntary contributions to your
super.

These conditions don’t apply to your employer’s SG contributions or any other
compulsory contributions, which can be made at any time.
A higher cap of $35,000 applies if you were aged 49 or over at 30 June 2015.
Contribution caps at a glance
Concessional
(pre-tax)
$30,000 pa
Under 50
Contribution caps
Non-concessional
(after-tax)
$180,000 pa
OR
$540,000
65 to 74
If under 65
(over three financial years)
$35,000 pa
50 or over
Following these contribution rules can help you avoid paying excess tax. A financial
adviser can help you work out a strategy to make the most of the tax concessions that
come with contributing to super under the caps.
All figures apply for the 2015-16 financial year.
Want to know more?
Talk to your financial adviser, call us on 13 13 36 or visit our website at
colonialfirststate.com.au