Why are there limits on how much I can contribute to Superannuation ?

We all accept that Superannuation exists to help provide for us in retirement – so it stands to reason that we would want these balances to be as big as possible. One way to boost these balance is to make regular contributions – which takes advantage of the powerful concept of compounding your investment returns.

But while the government wants to encourage us to save for our retirement, it doesn’t want us treating superannuation as a tax haven. Because of this, limits have been placed on both concessional (before tax) and non-concessional (after tax) contributions that can be made to our Superannuation funds.