Superannuation cap increased for over 60s

If you were 59 years of age or older as at 30th June 2013, you can now put away up to $35,000 in concessional superannuation contributions. 'Concessional' contributions are those amounts which are taxed at the lower super fund rate of 15%. It's this rate that makes superannuation such a tax effective savings strategy.

The previous cap on concessional contributions was $25,000 for everyone. This is part of an overall strategy to increase the concessional limit for all taxpayers. This same increase will apply for those aged 50 and over from 1st July 2014 and for all taxpayers by 1st July 2018.

If you are over 60 and have the funds available, this increase is welcome news and may result in your retirement nest egg being considerably larger. Please contact us if you'd like any further information.

Posted: August 15, 2013 | 0 comments



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