Higher contributions cap of $35,000 - 5th August 2013

On 1 July 2013, the concessional contributions cap increased from $25,000 to $35,000 for individuals aged 60 years and over. The same threshold will apply from 1 July 2014 for individuals aged 50 years and over.

TIP: Eligibility for the higher cap depends on a persons age on 30 June in the previous income year. This means:

  • persons who were aged 59 years or over on 30 June 2013 are eligible for the higher cap in 2013-2014; and
  • persons who will be aged 49 years or over on 30 June 2014 will eligible for the higher cap in 2014-2015.
Please contact our office if you wish to discuss your eligibility for the higher cap.

Under the new cap, eligible individuals will potentially be able to claim greater deductions for superannuation contributions, or salary-sacrifice larger contributions. It is important to note that this temporary concessional cap will cease when the general cap reaches $35,000 through indexation (which is expected to be 1 July 2018).

TIP: Taxpayers aged 59 years or over on 30 June 2013 should consider reviewing their salary-sacrificing arrangements, deductions for personal contributions and transition to retirement pensions to take into account the higher concessional cap of $35,000 for 2013-2014.

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