Clarifying superannuation contribution cap impact for individuals 75 and over

From the ATO, 24 October 2012

From 1 July 2012 the super concessional contributions cap is $25,000 for everyone. In August 2012 the ATO wrote to approximately 370,000 individuals aged 50 or older who had large concessional contributions in the 2011-12 financial year, to advise that on 1 July 2012 the concessional contributions cap reduced to $25,000.

The ATO's intention was to give recipients the opportunity to review their contributions and to seek professional advice if they had concerns about their contributions exceeding the concessional cap this financial year. The ATO received some queries from recipients aged 75 years and older wanting to clarify if they are able to make concessional contributions, given that the cap now relates to individuals of any age. To explain how the contribution caps impact individuals aged 75 years and older:


  • Funds can still only accept mandated employer contributions for members aged 75 years and over
  • Where mandated employer contributions are made for people aged 75 or over, the concessional contributions cap will apply to them, and
  • Other than mandated employer contributions, people aged 75 years and older can not contribute to super.


Mandated employer contributions are contributions made by an employer on behalf of an employee that are either:


  • used to satisfy employer superannuation guarantee (SG) obligations, which cease when the employee reaches age 70, or
  • made to satisfy an obligation imposed by an award made or agreement certified by an industrial authority (there is no age limit on these mandated employer contributions).



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