Aware Super Logo

Home

Non-concessional contributions

Non-concessional contribution

Section: 5.1

What is a non-concessional contribution?

A non-concessional contribution is a contribution made by (or for) someone that is not included in the assessable income of the fund and consequently no tax is paid upon receipt by the fund. The term 'non-concessional' reflects that no tax deduction is generally available in respect of the contribution. A non-concessional contribution is made using after-tax money.

Types of non-concessional generally include:

Type Description
Personal Contributions made by (or for) a member, where no tax deduction is claimed
Spouse Contribution made by a member for their spouse. The contribution count towards the recipient spouse's cap.
Contributions made for a child under 18 Contributions made by a third party to a child under 18 or other than:
  • those made by the employer or spouse of the member
  • the Government co-contribution

Amounts that are excluded from the non-concessional contributions cap include:

  • Government co-contributions
  • CGT cap contributions
  • Personal injury contributions

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