Non-concessional contributions
Non-concessional cap
Section: 5.2
Members under age 65, the non-concessional contributions limit for a given financial year is as follows:
| Income year | Cap |
| 2020-21 | $100,000 |
| 2019-20 | $100,000 |
| 2018-19 | $100,000 |
Members aged between 65 and 74, are allowed to make a non-concessional contribution if they satisfy the following criteria:
| $1.6 million eligibility threshold | This was introduced from 1 July 2017. A member with a total superannuation balance of $1.6 million or more on 30 June of the previous financial year are NOT allowed to make non-concessional contributions. |
| Work tested rules | Before 1 July 2020
Before 1 July 2020, the cut-off age for work test related rules is 65. If a member is aged between 65 and 74, the member will need to meet work test or be eligible for the work test exemption in order to make non-concessional contributions into their super fund. |
| After 1 July 2020
From 1 July 2020, the cut-off age for work test related rules is increased to 67. This means if a member aged between 65 and 66 and their total superannuation balance on 30 June of the previous financial year did not exceed $1.6 million, they are allowed to make non-concessional contributions into their superannuation fund without to pass a work test or meet the work test exemption criteria. Members aged between 67 and 74, they are required to meet a work test or be eligible for the work test exemption in order to make non-concessional contributions. |
Members aged 75 years and older:
| A member who is 75 years or older, a super fund can only accept compulsory super contributions made for the member by their employer and downsizer contributions. However, if a member is turning 75 during a financial year they can make a non-concessional contribution to their super fund on or before the day that is 28 days after the end of the month in which the member turn 75. IN this case the member can still only contribute if they pass a work test or meet the work test exemption criteria, and subject to the $1.6 million eligibility threshold. |
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: Tuesday, September 15, 2020