Concessional superannuation contributions are the contributions paid with pre-tax money, such as employer and salary sacrifice contributions and personal contributions that you have or will claim for tax deductions.
Under Australian law, any person who is under 65 is allowed to make a contribution to his super account, and if you are under 65 years of age there is no employment test that needs to be satisfied.
In case if you have reached 65 years of age there are minimum hours of work criteria that need to be met for the employee to do concessional contribution into his super.
This type also includes payments made by you or any voluntary salary sacrifice, they are taxed at 15%. There are caps on the concessional contributions you can make on each financial year’
When working out contributions for each financial year, contributions don’t count when the payment is sent, they only count once the payment is received in the super fund.
An employee can salary sacrifice some of their pre-tax salary (up to a cap amount) into a complying super fund and save paying income tax on the amount contributed.
Once you make a contribution you can’t withdraw it legally unless you satisfy release criteria.
The amount of concessional contribution into superannuation is capped each year if you exceed the capped limit, the excess amount is taxed up to 47%.
If your age is under 50 years for the taxable year the contribution is capped at $25,000, any contribution above that limit during a financial year is taxed up to 47%.
If your age is more than 50 years and your superannuation account balance is less than $500,000 then the contribution limit is raised to $50,000, the excess amount is taxed at 47%.
If your age is more than 50 years and your superannuation account balance is more than $500,000 then the contribution limit is raised to $25,000, the excess amount is taxed at 47%.
There is no limit on the amount that can be contributed by your employee or eligible contributors.