Concessional contributions cap for higher income earners

Some members have asked if there is a way they can reduce the level of their employer superannuation contributions so they do not exceed concessional contributions cap. This question has arisen as a result of the reduction of the concessional contributions cap in the last Budget from:

  • $50,000 to $25,000 for those under the age of 50

    • and

  • $100,000 to $50,000 for those 50 years and older on 30 June 2010.

As a PSSap member, you receive a 15.4% contribution rate. This higher rate means you might be affected by the reduction in the concessional contributions cap if you are:

  • less than 50 years old and earning more than $162,337

    • or

  • 50 years old (or greater) and earning more than $324,675.

We understand it may be possible to remain within the caps if you have appropriate arrangements in place with your employer.

If this matter affects you, we suggest you contact your personnel area.