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Concessional contributions

Concessional contributions types and cap

Section: 4.2

4.2 Concessional contributions types and cap

Concessional contributions cap

Concessional contributions including employer (SG) contributions, salary sacrifice contributions and personal contributions claimed as a tax deduction*, cannot exceed the annual cap shown below:

Income year Superannuation contribution caps
Concessional 2021-22 onwards $27,500
Concessional 2020-21 $25,000

Excess concessional contributions

Members are liable to pay excess contributions charges if the concessional contributions made by or for the member exceed their contributions cap for the year. The excess contributions are included in the member's income and taxed at marginal tax rates.

Unused concessional cap carry-forward contributions

From 1 July 2018. a member who has a total superannuation balance of less than $500,000 on 30 June of the previous financial year is entitled to contribute more than the concessional contributions cap amount by contributing any 'unused cap amounts' from the past five years.

Full list of concessional contribution types:

Type of concessional contribution Description
Super guarantee (SG) Employer contributions must be made for employees at the prevailing SG rate.
Salary sacrifice amounts Voluntary contributions made by an employer to a members super fund - the employee makes an arrangement with their to direct (or 'sacrifice)' part of their income to superannuation.
Notional taxed contributions The notional amount of contributions that related to a member's defined benefit interest.
Voluntary employer contributions Any employer contributions exceeding an employer's super guarantee obligations, including fund costs paid by the employer (e.g. administration fees and insurance premiums)
Personal tax-deductible contributions Member contributions for which a tax deduction is claimed
Certain allocations from a reserve An amount within an SMSF that have not been allocated to a particular member.
Third party ('family and friends') contributions contributions by parents, other family or friends (not in the capacity of an employer)

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 registered tax agent before relying on information published herein that may impact their tax obligations, liabilities or entitlements.

Last modified: Wednesday, June 28, 2023