The limits on contributions have become vitally important. Not only are they low, but the penalties for exceeding them are extreme.
Concessional contributions were reduced to $25,000 in response to the GFC, and the first of the indexation increases that were due to take affect at the time was also cancelled.
However, over time this limit will increase with indexation (in $5,000 increments). The non-concessional contributions aren't indexed per se but they are a fixed multiple of the concessional limit so they will ultimately increase over time also.
The taxation of contributions depends on what they are, and other factors such as whether the fund has recorded your TFN. There are also rules about how and when these contributions need to be allocated to members, and how you go about getting a deduction if making the contributions personally.
And finally, just as importantly to making your contributions, its important to understand how these affect your superannuation components as these affect the tax that may be payable from an estate planning perspective.
