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Concessional contributions

Concessional contributions cap

Section: 4.1

What is a concessional contributions?

Generally, a concessional contribution is a contribution made by (or on behalf of) someone that is included in the assessable income of the fund.

The concessional part of the contribution reflect the tax deduction generally claimed by the employer or individual+. Accordingly, the contribution is subject to tax at up to 15%.

Other things to consider with the cap:

  • If a member exceeds the cap, additional tax and penalties may apply.
  • Additional tax on concessional contributions (Division 293) - above the threshold - $250,000

What are the concessional contributions cap?

Concessional contributions are limited by the concessional contributions caps. For 2020/21 financial year the cap is $25,000, and this cap applies to all individuals.

This technical resource is intended for the use of financial advisers only. It is current as at the date of publication but may be subject to change. This publication has been prepared without taking into account a potential investor's objectives, financial situation, needs or objectives. Before making a recommendation based on this material, you should consider its appropriateness based on the client's objectives, financial situation and needs. Rainmaker Group is not a registered tax agent under the Tax Agent Services Act 2009. Your client should refer to a registere tax agent before relying on information published herein that may impact their tax obligations, liabilities or entitlements.

Last modified: Tuesday, September 15, 2020