Many staff, particularly those that are older, may elect to make additional contributions to superannuation by way of salary sacrifice so that they can utilise the lower tax that applies to such amounts. However, there are limits to these tax concessions. The limits for 2014-2015 and 2015-2016 are:
- $30,000 (if aged under 50 at income year end); and
- $35,000 (if aged 50 or older at income year end).
The limits include the total of both employer and sacrificed superannuation.
At times, the total amount contributed may exceed the relevant limit. This can be for various reasons, such as:
- contributions made for that individual by another employer ; or
- contributions received and recognised by a fund in a different income year than expected by the employee (see comments below).
The ATO has published an excellent fact sheet that explains what happens if the relevant concessional limit is exceeded. The rules have changed a number of times over the past few years so it can be a complex area and one that an employer should not advise staff on. For those who think staff may be interested in this area or have an interest themselves, a copy of the fact sheet can be accessed here:
https://www.ato.gov.au/uploadedFiles/Content/SPR/downloads/SPRQC38466 Super contribution limits.pdf