Concessional Contributions: Higher Cap for Those Aged 50 and over

The Government will set the proposed higher concessional contributions cap at $25,000 above the general concessional cap, for eligible individuals aged 50 and over with total superannuation balances of less than $500,000.

The Government has confirmed that the higher cap will enable eligible persons over 50 to be able to contribute $25,000 more per year than other workers subject to the general concessional contributions cap of $25,000. As a result, when the general concessional contributions cap increases with indexation from $25,000 to $30,000, the higher cap will increase by the same dollar amount.

This measure will apply from 1 July 2012.