Contribution Cap Changes
From July 2012, the Concessional Superannuation Contribution Cap has dropped from $50k to $25k for people aged 50 years or over.
The last time this occurred, the Australian Tax Office (ATO) saw a 31% increase in breaches, likely attributed to people being unaware of the cap changes or they didn’t do a good job of tracking their contributions.
A tax penalty of at least 31.5% is payable for breaches, and the ATO has limited discretion to change its assessments.
Don’t be caught out, if you have any questions or concerns about contribution cap please speak to your adviser.