Super Contributions Explained

Please contact Acct Smart Pty Ltd or your Superannuation Fund for further clarification.

Concessional $ 27,500 per year*

These are generally tax deductible to your employer or yourself. A contributions tax of 15% is paid to the ATO by the fund on these contributions. Therefore, 85% of the contribution is the net addition to your superannuation fund balance. 

Unused Concessional Cap (catching up if and when you can AND getting a tax deduction)

Individuals with a total superannuation balance of less than $ 500,00 (determined 30 June of the previous financial year) can make ‘carry-forward’ concessional superannuation contributions. 

*The unused cap is calculated by totalling the unused amounts less than the applicable $ 25,000 (2018 to 2021) and $ 27,500 (from 2021). The carry-forward amounts can be used on a rolling-basis for up to five years, after which they will expire. 

If a taxpayer no longer has carry-forward concessional caps, contributions above the cap will be subject to an excess contribution tax rate of 47%. 

Non-Concessional $ 110,000 per year

These contributions are not tax deductible and no tax is payable to the ATO on receipt to your fund. (These monies often come from after tax source eg inheritances, excess funds from property sales, savings etc). 100% of the non-concessional contribution is added to your superannuation fund balance. 

Carry-Forward Unused Non-Concessional Cap 

Individuals can make contributions up to $330,000 in one year by bringing forward three years contribution entitlement - conditions do exist, eg total superannuation balance limits. 

Members that have not made any non-concessional contributions in excess of $ 110,00 in the previous three years have the ability to utilise the three-year bring forward cap of $ 330,000.