Concessional contributions
For the 2009–10 financial year, the concessional contributions cap is $25,000 per person.
Contributions over the cap amount are subject to extra tax. This extra tax is called the excess concessional contributions tax.
All concessional contributions to all of your super funds in a financial year are counted toward the concessional contributions cap. If you have a defined benefit super interest, notional contributions are also counted towards the cap.
Caps for people over 50 years of age
If you’re 50 years of age or over, your concessional contributions cap is $50,000 per year.
If you turn 50 years of age during a year in this transitional period you will become eligible for the $50,000 cap in the same financial year.
Non-concessional contributions are personal contributions that are not claimed as an income tax deduction. These also include contributions made by the member’s spouse to the member’s super account.
For the period 1 July 2009 - 30 June 2010, non-concessional contributions made to super are capped at $150,000 (or $450,000 over a three-year period).
A tax of 46.5% is levied on the member for non-concessional contributions over the cap. The member is personally liable for this tax and must ask their super fund to release an amount of money equal to the tax
Non-concessional contributions are sometimes known as ‘after-tax’ contributions. These contributions include:
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personal contributions that you aren’t allowed an income tax deduction for (this includes personal contributions made to defined benefit funds and untaxed (constitutionally protected) funds)
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contributions your spouse (including a same-sex spouse) makes to your super fund unless your spouse makes contributions because they’re your employer.
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- contributions in excess of your concessional contributions cap (that is, your excess concessional contributions)
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contributions in excess of your lifetime super capital gains tax (CGT) cap amount
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amounts transferred from foreign super funds, excluding amounts included in the fund's assessable income
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any contributions made from 10 May 2006 that have not previously been counted as non-concessional contributions if the fund changes from being a non-complying fund to a complying fund
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contributions made for you if you are less than 18 years other than contributions made by your employer
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contributions made when the balance of your First Home Saver Account (FHSA) is transferred to your super account, including any FHSA government contributions included in the balance or paid after that, and
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contributions from your ex-spouse's FHSA paid under a family law obligation.
Non-concessional contributions do not include:
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the super co-contribution
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contributions arising from certain structured settlements or orders for personal injuries that result in permanent incapacity
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contributions up to a lifetime limit of $1 million (indexed) arising from the disposal of qualifying small business assets under the CGT small business exemptions
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contributions made to a constitutionally protected fund that would have been assessable income of the fund if the fund was a taxable super fund (for example, employer contributions made to an accumulation fund that is constitutionally protected)
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contributions to a public sector super scheme that are not included in the fund's assessable income because of a choice made by the scheme’s trustee (sometimes called last minute contributions)
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a rollover or transfer of a super benefit between complying funds, and
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the tax-free component of a directed termination payment