Superannuation Contribution Cap for 2013 – 2014 has been released by the ATO. We recommend that if you are offering salary sacrifice superannuation to your employees, include a disclaimer in your staff handbook that employees have received professional financial advice and understand the tax implications of what they are requesting the Payroll Officer to do. If they go over this amount then potentially there could be additional tax on those contributions of 31.5% (Although it looks like amendments are coming in that will allow employees to re draw these over contributions to their funds and pay their marginal tax rather than be penalised at the highest tax rate).
ATO cap for 2013-2014 as follows;
2013-2014 – $25,000. If you are over 60 years of age the superannuation contributions cap will be $35,000
2014-2015 – $25,000. If you are over 50 years of age the superannuation contributions cap will be $35,000
Refer to our Payroll Administration course for full details – Classroom or Online Learning available.
Source : ATO Website