The boundaries of the super labyrinth Unlike a true labyrinth, you can actually step outside the superannuation cap boundaries set out by parliament in the Simpler Super changes made to superannuation in 2007.
Members are not in fact prohibited from making contributions in excess of the concessional and non-concessional contribution caps. Members almost always still obtain a full tax deduction in their own personal tax return for their superannuation contributions. However, it is only in limited circumstances that it remains a tax effective strategy as outlined in my article When is Excess not Excessive? in the March/April 2010 edition.
Therefore the actual boundaries are:
• that superfund trustees are not allowed to accept contributions in excess of the caps in certain circumstances; but
• the bigger deterrent is played by the excess contributions tax.