Changes in rules over time – Concessional Contribution Limits

The goal posts with superannuation like everything in life do change.

It is interesting to look back at what they have been in the past which in some instances seem quite generous (see the ATO link here). For example, in the financial year 2007/2008, if you were over 50 years old, you could contribution $100,000 concessionally into superannuation. This is quite a lot for an annual amount, they later reduced this amount. In the last 10 financial years the maximum has been $35,000 p.a. and the lowest has been $25,000 p.a.

Currently at the time of writing the annual limit is $30,000 p.a.

However, depending on your situation – you may be able to contribute more than this concessionally into superannuation. One way is using the “unused concessional cap carry-forward” rule. This was brought in from the 1st of July 2018. The first year you can use unused amounts is the 2019-2020 financial year. This will allow you to “look back” and contribute amounts you previously haven’t concessionally up to previous years’ limits. There are a few contingency’s around this like your total superannuation balance as at 30 June of the previous financial year needs to be under $500,000 and a maximum “look back” period of 5 years.

Keeping in mind, the above concessional limits don’t apply to constitutionally protected funds like the one we have here in South Australia for state government employees (SuperSA Triple S). There are a different set of rules surrounding this fund.

It can be hard to plan for the future and yes rules do change, all we can do is make the best/most of where things are at today to set yourself up the best you can for the future.