How are the contribution limits changing from 1 July 2014?
Concessional contributions, which includes employer contributions, salary sacrifice and tax deductible contributions for the self-employed, currently has a cap of $25,000 per year for anyone under the age of 60 and $35,000 for anyone over 60.
From 1 July 2014, concessional contributions will increase to $30,000 for those under age 50. For anyone aged at least 49 on 30 June 2014 the contribution limited will be $35,000.
The next type of contribution is called a non-concessional contribution. This type of contribution is from after-tax (ordinary) money. The current limit is $150,000 per year or for anyone under age 65 who breaches the $150,000 a maximum of $450,000 can be contributed on a rolling three year period.
From 1 July 2014 this non-concessional contribution will increase to $180,000. Therefore, the rolling three year contribution limit increases to $540,000.
A number of strategies can be executed to take advantage of the changes and contribute significant amounts of money into a concessionally taxed environment of superannuation.
Changes to insurance from 1 July 2014