When you claim a tax deduction, your after-tax contribution is converted to a before-tax contribution. This counts towards your annual concessional contributions cap.
When you decide how much you want to add to your super, keep your contribution caps in mind. Concessional contributions are made before-tax.
You can contribute up to $27,500 each financial year. These contributions include:
- Employer contributions, including the super guarantee,
- salary sacrifice, and
- personal concessional contributions.
If you have multiple super accounts, the total of all your concessional contributions across your super accounts together is included in your concessional contribution cap of $27,500.
The government also allows you to use catch up concessional contributions. These contributions let you add more to your super if you haven’t reached the cap in previous years.
All your contributions are added up and count towards your caps.
If you go over the cap, you might pay extra tax.
Learn more about how much you can contribute to super