An important consideration when making a superannuation contribution or when a contribution is made on behalf of a member, e.g., employer contribution, is the contribution cap consequences. Exceeding a contribution cap can lead to additional tax. So, it’s crucial to know which cap applies and how much cap space is available. 

Whilst there are still four months before year end, it’s not too early to start planning for contributions to be made and counted in this 2021-22 income year – don’t leave it to the last minute! It’s also worthwhile to review how you will ensure that you have at hand the relevant information for a person in respect of 2021-22 to accurately advise them of their contribution caps and cap space for this year. This includes:

• The member’s total superannuation balance at 30 June 2021.
• If there is available eligible unused concessional cap from a prior year.
• What contributions have already been made so far and which contribution cap applies.
• Their expected level of taxable income (relevant for a claim for personal superannuation contributions). 

Accurium has released a contribution cap calculator to assist accountants, administrators and advisers in determining an individual’s contribution cap, either concessional or non-concessional for a given income year. The calculator includes consideration of the:

• catch-up concessional contribution rule;
• bring forward rule for non-concessional contributions, including whether it was triggered prior to the 2021-22 income year before indexation of the contribution caps.

The calculator is available via Accurium’s TechHub. Once in TechHub, just click on the “Calculators” tag and a list of all our available calculators will appear. 

Access to TechHub is complementary for our actuarial certificate customers. You can find out about our TechHub education by clicking here. 

You may also like to refer to the following TechHub technical articles on contributions:

• “Are you making a mistake when commencing a pension with specific contributions?”
• “Boosting retirement savings though a personal deductible contribution strategy”
• “Contributions: which comes first, acceptance or the cap?”
• “Unused concessional cap carry forward”