When looking at different super contributions, there are two main types of contributions that you can generally make into your chosen superfund; these include concessional and non-concessional contributions.
Concessional contributions
Concessional contributions otherwise known as before-tax contributions, refer to contributions made into your superfund that have not been taxed yet. Once the funds are in the superfund, they are generally taxed at a rate of 15%. However, once the concessional contribution cap has been exceeded, you may be subject to additional tax.
As per the Division 293 tax if your combined income and concessional contributions is greater than $250,000, then you may be subject to a higher tax rate of 30%.
Types of concessional contributions
Different types of concessional contributions include:
- Employer contributions
- Personal contributions
- Notional taxed contributions
- Family and friend contributions
- Unfunded defined benefit contributions
- Contributions allocated from a fund reserve
Concessional contribution caps
The current concessional contribution cap is $27,500, implemented from 1 July 2021. The cap increased as per indexation, to keep in line with the Average Weekly Ordinary Time Earnings (AWOTE), following the previous cap of $25,000 in place between 1 July 2017 to 30 June 2021.
Figure 1: Concessional Contributions Caps from 2017-18 to present
| Financial Year | General concessional contributions cap |
| 2022-23 | $27,500 |
| 2021-22 | $27,500 |
| 2020-21 | $25,000 |
| 2019-20 | $25,000 |
| 2017-18 | $25,000 |
Source: Australian Taxation Office
Carry forward unused concessional contributions
As per the carry forward rule implemented in the 2019-20 financial year, you are able to make additional contributions which exceed the concessional contributions cap without paying additional tax.
To be eligible for the extra contributions, the following criteria must be met:
- The total balance of your superfund must be less than $500,000 by the end of 30 June of the previous financial year.
- The concessional contributions made in the current financial year, exceed the concessional contributions cap.
The total amount that you are able to exceed the general concessional contributions cap by depends on the amount you have contributed over the past financial years following 2018-19.
Additionally, the unused cap amounts are only available for a maximum of 5 years. For example, if you have a $10,000 unused cap amount from the 2019-20 financial year, it will need to be used by the end of the 2024-25 financial year.
Non-concessional contributions
Non-concessional contributions otherwise known as after-tax contributions, refer to contributions made into your superfund that have already been taxed.
Types of non-concessional contributions
Different types of non-concessional contributions include:
- Employer contributions from after-tax income
- Personal contributions from after-tax income or which has not been claimed as an income tax deduction.
- Contributions made by your spouse
- Contributions which exceed your Capital Gains Tax (CGT) cap amount
- Small business CGT concessions – Small business 15-year exemption
Exclusions
The list below does not count towards non-concessional contributions:
- Structured settlement contributions
- Downsizer contributions
- Contributions that are within the Capital Gains Tax (CGT) cap
- Re-contribution of COVID-19 early release superannuation amounts
Non-concessional contribution caps
The current non-concessional contribution cap is $110,000, implemented from 1 July 2021. The cap increased as per indexation, to keep in line with the Average Weekly Ordinary Time Earnings (AWOTE), following the previous cap of $100,000 in place between 1 July 2017 to 30 June 2021.
Figure 2: Non-concessional Contributions Caps from 2013-14 to present
| Financial Year | General Non-concessional contributions cap |
| 2022-23 | $110,000 |
| 2021-22 | $100,000 |
| 2020-21 | $100,000 |
| 2019-20 | $100,000 |
| 2017-18 | $100,000 |
| 2016-17 | $180,000 |
| 2015-16 | $180,000 |
| 2014-15 | $180,000 |
| 2013-14 | $150,000 |
Source: Australian Taxation Office
Bring-forward arrangements
The bring-forward arrangement refers to additional contributions that exceed the annual non-concessional cap, that may allow you to gain access to the caps of future years. This benefits you in allowing you to make additional contributions without having to pay additional tax.
To be eligible for the extra contributions, the following criteria must be met:
- Age – From 1 July 2022, if you are under the age of 75 years, you make non-concessional contributions of up to 3 times the annual non-concessional cap of that financial year and if you are 75 years old or older then your superfund may only accept either employer contributions or downsizer contributions.
- Total super balance (as per 30 June of previous financial year) – Following the 2022-23 financial year, you must be under 75 years old for at least one day within the triggering year and contribute more than the annual cap, see figure 2. You mustn’t already be within an active bring forward period and have a total super balance that is less than the general transfer balance cap, ($1.7 million implemented from the 2021-22 financial year, as per the end of 30 June from the previous financial year.
Figure 3: Bring-forward period
| Total super balance on 30 June of previous year | Non-concessional contributions cap for the first year | Bring-forward period |
| Less than $1.48 million | $330,000 | 3 years |
| $1.48 million to less than $1.59 million | $220,000 | 2 years |
| $1.59 million to less than $1.7 million | $110,000 | No bring-forward period, general non-concessional contributions cap applies |
| $1.7 million or more | nil | Not applicable |
Source: Australian Taxation Office
If you would like to speak to an EPG Wealth adviser to discuss which contributions are available to you and the ways you can maximise your super, click here.
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