The salary sacrificing or “concessional” cap for superannuation is to be increased to $30,000 for the 2014-15 year, from $25,000 now.

The cap is is the limit on how much can be salary sacrificed into super in a financial year and includes the compulsory super paid by employers.

From July everyone will be able to put more money into their super. Credit:istock

Salary sacrificing is a powerful way to save for retirement for most people as the contributions tax on super is 15 per cent compared with your marginal income tax rate. And it is taxed at a low rate once inside super.

The Australian Taxation Office has published the new caps on its website, which includes indexation of the non-concessional (after tax) cap to $180,000 from July 1, from $150,000 now. The non-concessional cap is maintained at six times the concessional cap.