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Tax and other useful facts

Non-concessional contributions cap

Section: 6.13

Generally, a on-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 member is liable to pay excess contributions tax if the member's non-concessional contributions exceed the non-concessional contributions cap for the year.

Income year Cap amount
2019-20 $100,000
2020-21 $100,000

The non-concessional contributions cap is indexed in increments of $2,500 in line with average weekly ordinary time earnings.  From 2017-18, the non-concessional contribution cap is nil for a member who, immediately before the start of the year, had a total superannuation balance that equals or exceeds the $1.6m general transfer balance cap of the year. Such members are not allowed to make non-concessional contributions for the year.

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: Thursday, August 27, 2020