Non-concessional contributions (NCCs) are one of the most powerful tools in the superannuation system for building wealth, managing estate planning outcomes, and creating tax-free retirement income. They are also one of the easiest areas of super to get wrong.
This article explains how non-concessional contributions work in practice, the rules that matter, and how advisers use NCC strategies effectively — and safely — in real-world planning.
What are non-concessional contributions?
Non-concessional contributions are contributions made to super from after-tax money for which no tax deduction is claimed. Because tax has already been paid, these contributions generally form part of the tax-free component of a member’s super balance.
Common examples include:
- After-tax personal contributions
- Contributions made from savings or inheritances
- Contributions following the sale of assets (excluding downsizer contributions, which follow separate rules)
There is no contributions tax applied to NCCs when they enter super, provided all eligibility rules are met.
The non-concessional contribution cap
For the 2024–25 and 2025–26 financial years, the standard non-concessional contribution cap is $120,000 per person.
However, the ability to make NCCs — and the amount that can be contributed — is directly linked to an individual’s Total Super Balance (TSB) at the previous 30 June.
Total Super Balance thresholds – important year-by-year distinction
This is an area that commonly causes confusion, particularly around indexation.
- For the 2024–25 financial year:
– If your TSB at 30 June 2024 was $1.9 million or more, you cannot make non-concessional contributions.
– If your TSB was below $1.9 million, NCCs may be permitted, subject to bring-forward limits. - From 1 July 2025 (for the 2025–26 financial year):
– The upper TSB threshold increases to $2.0 million.
– If your TSB at 30 June 2025 is $2.0 million or more, you cannot make non-concessional contributions.
– If your TSB is below $2.0 million, NCCs may be available, subject to bring-forward rules.
TSB includes:
- Accumulation interests
- Pension balances
- Certain rollover and in-transit amounts
Exceeding the TSB threshold can permanently prevent further non-concessional contributions, making timing critical for late-career planning.
The bring-forward rule explained
The bring-forward rule allows eligible individuals under age 75 to bring forward up to three years’ worth of NCC caps and contribute larger amounts in a single year.
- For the 2025–26 financial year, the bring-forward thresholds are broadly:
- TSB under $1.76 million – up to $360,000 over three years
- TSB $1.76m to under $1.88m – up to $240,000 over two years
- TSB $1.88m to under $2.0m – up to $120,000 (no bring-forward)
- TSB $2.0m or more – no NCCs permitted
Once triggered, the bring-forward period is locked in and cannot be reset until it expires. Accidentally triggering the bring-forward rule remains one of the most common and costly mistakes.
Age-based contribution rules
Age remains a key factor in NCC strategies.
- Under age 67 – NCCs can generally be made freely (subject to TSB)
- Age 67–74 – NCCs can be made without meeting a work test
- Age 75+ – NCCs are generally not permitted (with limited exceptions)
Although the work test rules have been relaxed, sequencing and timing still matter greatly.
Strategic uses of non-concessional contributions
When used correctly, NCCs can play a central role in advanced planning, including:
- Building the tax-free component of super
- Improving retirement income outcomes
- Reducing death benefit tax for beneficiaries
- Managing excess cash held outside super
For retirees or near-retirees, NCCs can materially improve long-term after-tax outcomes.
Common traps and mistakes
Non-concessional contributions are unforgiving when done incorrectly.
Common issues include:
- Exceeding the NCC cap
- Triggering the bring-forward rule unintentionally
- Making NCCs after exceeding the TSB threshold
- Poor sequencing with pension commencements
- Assuming excess contributions can be reversed easily
Excess NCCs can attract penalty tax of up to 47% if not corrected promptly.
Why advice matters
NCC strategies interact with:
- Concessional contribution strategies
- Pension commencements
- Centrelink outcomes
- Estate planning and beneficiary structures
What appears to be a simple contribution decision can have long-term and irreversible consequences.
How EPG Wealth approaches NCC strategies
At EPG Wealth, non-concessional contribution strategies are used selectively and strategically. Our focus is on:
- Technical accuracy
- Correct sequencing
- Long-term tax outcomes
- Alignment with retirement and estate planning objectives
If you would like to improve your current investment strategies or are looking to start your investment journey, click here to organise a complimentary 20-minute phone call with an EPG Wealth adviser.