From 1 July 2017, the Federal Government will lower the annual concessional contributions cap to $25,000 for all individuals as part of its 2016–17 Federal Budget Superannuation Reform Package.
To help you to understand how this change affects your super, we have developed a concessional contribution estimator.
The estimator is a simple-to-use, online tool to calculate your Concessional Contributions Cap Space - the difference between the concessional contributions cap and how much you have paid in concessional contributions across all your superannuation interests.
It is designed to help you manage your concessional contributions and avoid potential penalties for exceeding the cap.
For more information about the changes to the treatment of concessional contributions, see our Changes to Concessional Contributions factsheet [PDF 400kb].
For information about other measures in the Government’s Superannuation Reform Package, see our 2016-2017 Federal Budget page.
Note: The concessional contributions estimator may not display correctly on older versions of Internet Explorer (such as IE6 or IE7). We recommend using Chrome.
Concessional contribution cap estimator FAQs
Are concessional contributions being made for me?
As a DFRDB member, if you served at any time during the year, you will accrue concessional employer contributions which, to a certain extent, are counted toward your concessional contribution cap.
These values are estimated for each effective service period entered and make up your estimated DFRDB concessional contribution value prior to any additional values being considered. Note that all DFRDB members are regarded as accruing members – even those that have reached 40 years effective service – for the period employed by Defence with the exception of leave without pay periods of more than 21 days.
What is my superannuation salary?
Your DFRDB superannuation salary is the maximum incremental rate of pay for your substantive, provisional, or probationary rank, the annualised value of your service allowance or environmental allowance payable, and non-reduction pay (NRP) for the period entered.
If I take leave without pay, are concessional contributions accruing?
If your leave without pay period is less than 21 days, even where it includes one or more paydays, you are still considered a contributing member and will accrue concessional contributions for that period. Where your leave without pay is greater than 21 days, member (non-concessional) and productivity (concessional) contributions of any type are no longer payable; however, notional defined benefits (concessional) contributions continue to accrue for the period.
What is counted toward my concessional contribution cap?
Your total concessional contributions are made up of:
- Employer productivity contributions (also known as notional taxed contributions)
- Notional defined benefits contributions, to the extent that they exceed the productivity contribution value
- Salary sacrifice (pre-tax) contributions made to MilitarySuper or another fund
- OTE top up contributions made by Defence
- SG contributions paid into your superannuation account(s) by the ATO
- Employer contributions paid to a fund other than DFRDB, such as employer contributions paid to another fund post exit from the Australian Defence Force, or the DFRDB, such as ADF Super.
For DFRDB, this tool will estimate your total notional productivity and defined benefit contributions and display the estimated value that would be reported to the ATO based on the data entered. You are required to enter any other values which should be counted toward your concessional contribution cap in the fields provided for the period being estimated.
What happens if I exceed my concessional contribution cap?
Your concessional contribution cap may be exceeded where the total concessional contributions paid in a financial year, exceeds the total general concessional cap and any available carry forward provisions for that period, where applicable.
The ATO will write to you to advise you have exceeded your concessional contribution cap and any instructions they require from you with regard to the treatment of the excess value.
Where those instructions are to release funds from your superannuation interests, the ATO will send a release authority to the nominated fund. Where no fund is nominated, the ATO will send a release authority to your current fund.
It is important to note that some concessional contributions are protected from release.
For further information about the concessional contribution cap, please refer to the frequently asked questions.