Contribution Limits

There are limits for members making personal (non-concessional) contributions to their super. Limits also apply to employer (concessional) contributions. The limits shown below reflect those announced in the Federal budget May 2009. At this time, they reflect the Australian Government's planned legislation and are yet to be passed into law. Most members making regular fortnightly contributions will not have to worry about exceeding the limits. Members who invest a large sum of money into super by a one-off contribution or through regular payments will need to be aware of the limits. For example, Contributory Scheme members who are purchasing service or upgrading past rates of contribution should ensure they do not exceed the limits. Penalty tax will be payable on concessional contributions above the limits while the non-concessional contribution cannot be exceeded and excess contribution will be returned to you. Members who contribute to more than one account will need to ensure their total contributions, across all their super accounts, do not exceed the limit.

Non-concessional Contributions Limit

The non-concessional contributions limit is $150,000 each person per year

Contributions counted towards your limit

• Personal (after-tax) contributions
• Contributions made by your partner or another individual
• Non-taxable amount of a payment from an overseas super fund
• Excess concessional contributions (above the concessional contributions limit)

Contributions not counted towards your limit

• Government Super Co-contribution payments
• Settlement proceeds from an injury resulting in permanent disability
• Contributions received as part of a Family Law settlement or contributions splitting
• Concessional contributions

You can make personal (non-concessional) contributions if you are:

• under age 65, regardless of whether you are in paid employment; or
• age 65 to 74 and were employed for at least 40 hours in any period of not more than 30 consecutive days in the financial year in which the contribution is to be made.

If you are age 75 or over you cannot make personal contributions.

Non-concessional contributions limit of $450,000 over 3 years

If you are under age 65 you can 'bring forward' two years of non-concessional contributions and make a larger contribution, providing your non-concessional contributions do not exceed a three-year cap of $450,000 during that period. For example, if you contribute $450,000 in one year, you cannot make any non-concessional contributions for the following two years.

You will not need to contact RBF to activate the $450,000 'bring forward' rule, simply making contributions in excess of the annual limit will trigger the 3 year limit.

Although limits will be indexed, where the $450,000 'bring forward' has been activated, the 2 years future entitlements are not indexed.

A member aged 63 or 64 using the bring-forward rule by making a non-concessional contribution of between $150,001 and $450,000 in a financial year is not then required to demonstrate that they satisfy the work test in the 2 following financial years. However, if that member then wants to make a further contribution under the bring-forward rule after they have reached age 65, they will need to satisfy the work test.

Concessional Contributions limit

From 1 July 2009 the concessional contributions limit is $25,000 each person per year.

Contributions tax of 15% is payable on all concessional contributions.

Concessional Contributions included in the limit:

• All employer support and Super Guarantee payments (including employer sponsored productivity payments)
• For defined benefit schemes, a notional amount will be calculated to determine concessional contributions using a formula.
• Salary Sacrifice to any superannuation account

Members of RBF's defined benefit schemes should refer to the Contribution Limits fact sheet for more information about calculating the concessional contributions.

These include members of RBF's:

• Contributory Scheme
• State Fire Commission Superannuation Scheme
• Tasmania Ambulance Services Superannuation Scheme

Are there any transitional arrangements?

Special arrangements exist for members who will reach age 50 between now and 30 June 2012.

Once you reach age 50 and are able to satisfy the age requirement, you will be able to make concessional contributions up to $50,000 during each remaining financial year up to and including 2011-12.

More information

The Contribution Limits fact sheet provides more information about the limits as well as Tax File Numbers and indexation.