Concessional Contributions

Concessional contributions are sometimes known as before tax contributions.

From 1 July 2007 the Federal Government introduced changes in relation to superannuation.  Caps will now apply to contributions made to your super account.  Any super contributed over the cap amount is subject to extra tax.

What are concessional contributions?

 Employer contributions, including those made under a salary sacrifice arrangement.

 At UTS those will include:

• Salary packaged/sacrificed personal contributions to SSS, SASS or UniSuper.

• Salary packaged/sacrificed additional contributions to UniSuper or an external superannuation fund.

• Employer contributions of either17%, 9% or 3%.

Also to be taken into account are any employer contributions received from another employer.

The concessional contribution cap for the 2007-2008 financial year is $50,000 per person.  The $50,000 cap will be indexed to average weekly ordinary time earnings (AWOTE) and rounded down to the nearest multiple of $5,000.

If you are 50 or over the concessional contribution cap is $100,000 per year until 30 June 2012 and will not be indexed.

How do I find out what the balance of my concessional contributions for the financial year?

To determine the year to date balance of your concessional contributions:

Step 1:    Refer to your UTS payslip. 

On this document you will see the year to date (YTD) of the employer contributions paid to your fund and any amounts of superannuation that you requested to be salary sacrificed to your fund.

Step 2: If you are a member of a Defined Benefit Fund.

If you're a member of a defined benefit fund, working out the amount of concessional contributions you have in the fund can be less straightforward than with other types of funds. That's because your employer's contributions into defined benefit funds are usually pooled rather than linked to you as an individual member.

For more details in relation to your superannuation fund please see the options below:

Click on the below links for information relating to The Concessional Contribution Cap and your super fund:

State Superannuation Scheme

http://www.statesuper.nsw.gov.au/documents/Fact_Sheet_SSS_23.pdf

State Authorities Superannuation Scheme

http://www.statesuper.nsw.gov.au/documents/Fact_Sheet_SASS_16.pdf

UniSuper

http://www.unisuper.com.au/members/forms-brochures/how-your-account-works

Download either:

1 . Notational Taxed Contribution (NTC) rates for Defined Benefit Division members aged under 50

2 . Notional Taxed Contribution (NTC) rates for Defined Benefit Division members aged 50 and over