Frequently Asked Questions

Contributing inheritance into superannuation.


I’m 50 years old and work full-timeat our local hospital. Recently I received an inheritance and would like to contribute some of the inheritance into superannuation. Can you please confirm how much I can invest into my super fund without paying extra tax as the rules seem to keep changing?


Where you have received an inheritance and the funds are sitting in a cash account, any personal contribution you make to superannuation is likely to be a nonconcessional
contribution (i.e. a contribution where no tax deduction can be claimed).

For this financial year (2013/14), the cap on non-concessional contributions is $150,000. However, as you are under 65 years of age, you are able to contribute up to $450,000 tax effectively by utilising the cap for the next two years as well as this year. This would mean that no further non-concessional contributions could be made in the three year period without resulting in an excess amount which will be taxed at a penalty rate of 45% plus Medicare Levy.

The other important point to be aware of when making non-concessional contributions is that any contributions you have made in previous years may also affect the amount you can contribute now as some of your $450,000 limit may already be used. The best advice here would be to seek advice from your financial planner as the tax cost of exceeding the limits is significant.