Deductible Superannuation Contribution Limit
For the 2012/13 year, the maximum concessional superannuation contribution that can be claimed by an employer or a substantially self employed person is $25,000 regardless of age. This applies to both employers and substantially self employed persons.
The previously announced concession, extending from 1 July 2012 the $50,000 limit for individuals aged 50 or over with superannuation balances below $500,000, has been deferred until 1 July 2014.
Note that contributions above the $25,000 limit can still be claimed as a full deduction, but will be taxed to the member at an overall effective rate of 46.5%. Super guarantee contributions are included in the $25,000 limit.
Undeducted Superannuation Contribution Limits
For the 2012/13 year, the maximum after-tax contributions that can be made by an individual to a superannuation fund is limited to $150,000 per annum. This amount is fixed at six times the deductible contributions limit of $25,000 and will therefore increase as the $25,000 limit rises with indexation.
Where an individual is under the age of 65 at any time during the income year, there is a 3 year averaging rule whereby the person will be able to utilise the $150,000 cap for the current year and for the next two income years. This means that the person can in effect contribute a maximum of $450,000 as an undeducted contribution during the income year and the subsequent two income years. The $450,000 limit is automatically triggered in an income year where the taxpayer makes an after-tax contribution in excess of $150,000.