From the 1st of July the most that can be contributed to super for which you can claim a tax deduction is $25,000. This includes the money that your employer is paying through super guarantee charge (SGC). So if your employer pays $10,000 per annum in SGC on your behalf, then the most you can contribute is a further $15,000. Exceed this and there are penalties.

Who does this effect?
  • Salary Sacrificing employees.  If you are salary sacrificing your pre-tax income you should review the amount you are sacrificing to ensure that you are not going to exceed the $25,000 limit.
  • Anyone who would like to make a deductible super contribution who is eligible under the work and age tests.


It will be easier to make a contribution from the 1st of July 2017…..

If you are an employee you shall be able to make contributions from your after-tax income to super and claim a deduction up to the maximum contributions from all sources of $25,000. This may mean that if you are disciplined with your saving that you can accurately calculate in say June of 2018 as an example, how much super has been contributed and therefore how much you have available to contribute to take you up to your $25,000 and make a contribution. This would also negate the need to structure salary sacrifice payments with your HR or payroll department. If, however, you would prefer to continue or commence a salary sacrifice you should ensure that you do not exceed your contribution limit from all sources including what your employer pays to a total of $25,000.
If you are over 65 years of age and under 75 years of age you shall still need to satisfy the work test to make contributions and if you are over 75 you can not make a contribution to super at all.
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