On 1 July 2014 the cap limits for superannuation contributions were increased, allowing you to contribute more into superannuation before penalties are applied.
Concessional contribution caps apply to employers’ compulsory super guarantee contributions, voluntary salary sacrifice contributions and to personal deductible super contributions. The non-concessional cap applies to after-tax contributions.
The increase in caps are designed to assist you to save for their retirement sooner rather than later. The new contribution caps for the 2014-15 financial year are:
|$35,000 for people aged at least 50 by 30 June 2015.|
|$180,000 per year|
|$540,000 per three consecutive years (under ‘bring forward’ rule)|
Taking advantage of the increase in caps now could benefit you down the track. Adding regular contributions earlier rather than later, combined with compounding returns, could boost your retirement income substantially!
Give us a call now to see if you can take advantage of any of these increases.