The concessional contributions cap generally includes any contribution for which a tax deduction has been claimed. For those aged under age 75, employer mandated super contributions and salary sacrificed amounts into super are eligible for a tax deduction. Those aged 67 to 74 will still need to satisfy a work test if they wish to claim a personal superannuation deduction for their contribution.
For 2023/24 the standard concessional contributions limit is $27,500 regardless of age. This limit is subject to indexation but may not increase each year.
If you exceed the concessional contribution cap, the excess is added back to your assessable income for the financial year and taxed at your marginal tax rates. However, you will be entitled to a 15% tax credit on the excess amount that has been added to your income representing the contributions tax already withheld by the super fund. If the excess contribution is not refunded from the super fund, it will also count against the non-concessional contribution cap.
Please note: Since 1 July 2018, new catch-up provisions apply for concessional contribution caps. This means that any unused portions of your annual concessional contribution caps can now be carried forward for up to five years as long as your total superannuation balance does not exceed $500,000. Once you exceed this threshold, the carry forward provision will no longer be available, however the annual $27,500 concessional contribution cap will still apply. The first year you will be entitled to carry forward unused amounts is the 2019-20 financial year. This provision will be beneficial particularly for those who were not able to contribute up to their annual cap in a particular year, such as those having a career break or have lumpy income flows from year to year.