Contributions cap
The contributions cap is per person per financial year. If you contribute to more than one superannuation fund, all contributions made to all superannuation funds are counted towards the contributions cap. You must satisfy the eligibility requirements to contribute.
Concessional contributions cap
Concessional contributions are contributions that are taxable in the superannuation fund. Concessional contributions are subject to the 'concessional' rate of tax of 15% (contributions tax). Concessional contributions cap includes:
| Financial year | Amount of cap |
| 2023-24 | $27,500 |
| 2022-23 | $27,500 |
| 2021-22 | $27,500 |
| 2020-21 | $25,000 |
| 2019-20 | $25,000 |
| 2018-19 | $25,000 |
| 2017-18 | $25,000 |
Unused concessional cap carry forward
If you have not used your full concessional cap amount from previous years, you can carry them forward to use in later years. To be eligible:
Non-concessional contributions
Non-concessional contributions (after-tax contributions) are personal contributions made to superannuation fund and not claimed as a tax deduction. The non-concessional contributions cap is subject to your total superannuation balance.
| Financial year | Amount of cap |
| 2023-24 | $110,000 |
| 2022-23 | $110,000 |
| 2021-22 | $110,000 |
| 2020-21 | $100,000 |
| 2019-20 | $100,000 |
| 2018-19 | $100,000 |
| 2017-18 | $100,000 |
Non-concessional contributions cap – bring-forward rule
From 1 July 2022, persons under the age of 75 can contribute up to three times the amount of the cap over a three-year period. The three-year period is triggered in the year that the cap is exceeded. The non-concessional contributions cap is subject to total superannuation balance.
From 1 July 2020 to 30 June 2022 (2020-21 and 2021-22 financial years) - only persons under the age of 67 is eligible to use the bring-forward rule.
Up to 30 June 2020 (2019-20 and prior financial years) - only persons under the age of 65 is eligible to use the bring-forward rule.
Total superannuation balance
Total superannuation balance is the total of all your superannuation interest at the end of 30 June of each financial year. The amount of the non-concessional contributions cap and eligibility for bring-forward depends on your total superannuation balance (TSB).
From 1 July 2023 (2023-24)
| Total superannuation balance (TSB) on 30 June of previous financial year | Contributions and bring forward available |
| TSB less than $1.68 million | Access to $330,000 cap (over 3 years) |
| TSB is more than or equal to $1.68 million and less than $1.79 million | Access to $220,000 cap (over 2 years) |
| TSB more than or equal to $1.79m and less than $1.9 million | Access to $110,000 cap (over 1 year – not eligible for bring-forward) |
| TSB more than or equal to $1.9 million | Nil |
From 1 July 2021 to 30 June 2023 (2021-22 and 2022-23 financial years)
| Total superannuation balance (TSB) on 30 June of previous financial year | Contributions and bring forward available |
| TSB less than $1.48 million | Access to $330,000 cap (over 3 years) |
| TSB is more than or equal to $1.48 million and less than $1.59 million | Access to $220,000 cap (over 2 years) |
| TSB more than or equal to $1.59m and less than $1.7 million | Access to $110,000 cap (over 1 year – not eligible for bring-forward) |
| TSB more than or equal to $1.7 million | Nil |
Work and age restrction on personal contributions
From 1 July 2022, if you are between 67 and 74 years of age - you can make personal contributions, including salary sacrifice contributions without meeting the work test. However, you must meet the work test to claim a tax deduction for personal contributions (concessional contributions).
Work test is met when a person is gainfully employed for at least 40 hours during a consecutive 30 day period in a financial year. Unpaid work does not meet the definition of gainfully employed.
Division 293 tax
You are subject to Division 293 tax if you exceed the income threshold and you have taxable contributions for the income year. The rate of Division 293 tax is 15%.
| Income year | Threshold |
| 2017–18 and subsequent years | $250,000 |
| 2012–13 to 2016–17 | $300,000 |
Accessing superannuation benefits
Preservation age
Superannuation benefits are preserved, and can be accessed when you reach your preservation age and retired, or you are over the age of 65. You can commence a transition to retirement pension after you have reached your preservation age. Your preservation age depends on when you were born.
| Date of birth | Preservation age |
| Before 1 July 1960 | 55 |
| 1 July 1960 – 30 June 1961 | 56 |
| 1 July 1961 – 30 June 1962 | 57 |
| 1 July 1962 – 30 June 1963 | 58 |
| 1 July 1963 – 30 June 1964 | 59 |
| From 1 July 1964 | 60 |
Summary by age/ situation and type of superannuation benefits
Superannuation benefits held in your super fund will be in the form of preserved benefits. These benefits must be preserved until you meet the criteria for the benefits to be paid.
Unrestricted non-preserved benefits may be accessed at any time. Normally, you will only have these type of benefits if you have reach your preservation age and retired, or you are 65 years of age and over.
| Age | Benefits paid as lump sum | Benefits paid as income stream |
| Over preservation age but under age 60, and retired | Yes * | Yes ** |
| Over preservation age but under age 60, and still working | Only unrestricted non-preserved component (if any) * | Transition-to-retirement (TTR) pension ** |
| Age 60 and over but under age 65, and an employment arrangement cease after age 60 | Yes | Yes |
| Age 60 and over but under age 65, and still working | Only unrestricted non-preserved component (if any) | Transition-to-retirement (TTR) pension |
| Over age 65 | Yes | Yes |
* lump sum benefits paid to a member over preservation age and under age 60 is taxable to the member, subject to the low rate cap.
** taxable component of income stream payments to a person under the age of 60 is taxable. The tax is reduced by a tax offset equal to 15% of the taxable component amount.
Payment of benefits – Minimum annual income stream factor
For account-based superannuation income stream, there is a minimum amount of payment that is required to be paid each financial year to meet the requirements.
There is no maximum – the maximum is the total of the balance of your superannuation account, except a transition to retirement income stream (TRIS). The maximum for a TRIS is 10% of the account balance at the beginning of the financial year or in the first year, the capital amount of the TRIS on commencement.
The minimum is a percentage of the account balance at the beginning of the financial year (1 July) or in the first year, the capital amount of the income stream on commencement.
| Age (on 1 July or commencement) | Normal minimum pension % | 2019-20 to 2022-23 financial years minimum pension % |
| Under age 65 | 4% | 2% |
| 65 – 74 | 5% | 2.5% |
| 75 – 79 | 6% | 3% |
| 80 – 84 | 7% | 3.5% |
| 85 – 89 | 9% | 4.5% |
| 90 – 94 | 11% | 5.5% |
| Age 95 and over | 14% | 7% |
Taxation of superannuation benefits
Tax on income stream payment
All SMSF benefits are element taxed.
| Age of member | Taxation of income stream payment to member |
| Under preservation age | Taxed at member’s marginal tax rate plus levy. 15% tax offset applies only if disability superannuation benefits paid |
| Preservation age and over but under age 60 | Taxed at member’s marginal tax rate plus levy, with 15% tax offset |
| Age 60 and over | Not taxable |
Low rate cap
The low rate cap is a lifetime cap for superannuation lump sum payment. Amounts of lump sum amounts are cumulative, and once the cap is exceeded, the superannuation lump sum payment is taxable.
The low rate cap is only applicable to individuals over preservation age but under age 60.
| Year | Amount of cap |
| 2023-24 | $235,000 |
| 2022-23 | $230,000 |
| 2021-22 | $225,000 |
| 2020-21 | $215,000 |
| 2019-20 | $210,000 |
| 2018-19 | $205,000 |
| 2017-18 | $200,000 |
| 2017-18 | $195,000 |
Transfer balance cap
The transfer balance cap is the cumulative amount of superannuation benefits that can be transferred into retirement phase.
| Year | Amount of transfer balance cap |
| 2023-24 | $1,900,000 |
| 2021-22 to 2022-23 | $1,700,000 |
| 2017-18 to 2020-21 | $1,600,000 |
Limited recourse borrowing arrangement benchmark interest rate
Related party limited recourse borrowing arrangement (LRBA) safe harbour rates in compliance with Practical Compliance Guidelines PCG 2016/5.
| Year | Real property | ASX listed securities |
| 2023–24 | 8.85% | 10.85% |
| 2022–23 | 5.35% | 7.35% |
| 2021–22 | 5.10% | 7.10% |
| 2020–21 | 5.10% | 7.10% |
| 2019–20 | 5.94% | 7.94% |
| 2018–19 | 5.80% | 7.80% |
| 2017–18 | 5.80% | 7.80% |
| 2016–17 | 5.65% | 7.65% |
Updated: 19 January 2024
