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Contribution Types

Contributions to an SMSF can either be Concessional or Non-concessional:

  1. Concessional contributions (before-tax contributions, taxed at the concessional rate of 15%); and
  2. Non-concessional contributions (after-tax funds added to the SMSF, the SMSF will not get taxed on this again).

SMSF Concessional Contributions

The cap for a Member’s concessional contribution depends on their age as set out in the following table:

Income Year Age and applicable cap amount
2025 onwards All ages: $30,000
2022-2024 All ages: $27,500
2017-2021 All ages: $25,000
2016-2017 < 49 : $30,000 49 + : $35,000
2015-2016 < 49 : $30,000 49 + : $35,000
2014-2015 < 49 : $30,000 49 + : $35,000
2013-2014 < 59 : $25,000 59 + : $35,000

Concessional contributions made to an SMSF include:

Employer Contributions

Employers are required to make a Superannuation Guarantee Contribution (SGC) of 12% from 1 July 2025 of an employee’s gross salary and wages. Trustees have the choice of asking their employer to contribute directly into their SMSF . Trustees can fill out a superannuation standard choice form notifying their employers of their election to contribute directly into their SMSF. Generally, if you ask your HR department, they will usually transfer the contributions into the Fund you elect.

Salary Sacrifice

Salary sacrifice is an arrangement between an employer and an employee whereby the employee agrees to put more than 10% (9.5% before 1 July 2021) of their gross salary into their super fund. Doing so could result in tax saving if the Trustee’s marginal tax rate is higher than 15%.

From 1 July 2024, the concessional contribution cap has been increase to $30,000.

Between 2021 and 2024 Financial Year, the concessional contribution cap is $27,500.

Between 2017 and 2020 Financial Year, the concessional contribution cap is $25,000. For more information, please see here.

Personal Concessional Contributions

Members can add personal concessional contributions to an SMSF. This is also known as pre-tax super contributions. To claim this as a personal tax deduction, download the form and see the rules here.

Low Income Superannuation Tax Offset

From 1 July 2017, the Government introduced the Low Income Superannuation Tax Offset (LISTO) which replaced the Low Income Superannuation Contribution (LISC) policy. The purpose of LISTO is to offset the tax payable on concessional contributions made by low income earners. For more information on LISTO, please see here.

Excess Concessional Contributions

From 1 July 2013, if a Member exceeds their concessional cap, the amount over the cap will be included in their assessable income and taxed at their marginal tax rate plus an excess concessional contributions (ECC) charge. The ECC charge is applied to concessional contributions in excess of the cap to recognise that the tax is collected later than normal income tax. The Tax Office will apply a 15% tax offset to account for the contributions tax that has already been paid by the super fund. This will be issued to the member on an income tax Notice of Assessment or income tax Notice of Amended Assessment.

From 1 July 2018 if your total super balance is less than $500,000 you are able to add unused amount of your concessional contributions cap to the following years limit. To read more on the Carry forward rule regarding concessional contributions, please click here.

Non-Concessional Contributions

 The non-concessional contributions cap is currently to $120,000 per year. This is effective from 1 July 2024.

The non-concessional contribution cap has been increased from $110,000 (effective 1 July 2021 to 30 June 2024, ) and $100,000 before that (effective 1 July 2017 to 30 June 2021).

Members can still bring forward their non-concessional contributions over three years. See this table to see the effect of the bring-forward rules over the increased caps by clicking on this link:

Super Contributions Cap

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