A Non-Concessional Contribution is after tax money that Members contribute to their SMSF. These contributions are not taxed in your Super Fund, as it has already been taxed in a personal capacity.
There are caps on the Non-Concessional Contributions you can contribute to your SMSF each financial year. If you go over the cap, you may have to pay penalty tax on the excess contribution. From 1 July 2021, the Non-Concessional Contribution cap is $110,000 per year for each Member. Individuals who hold a superannuation balance of more than $1.9 million cannot make any further Non-Concessional Contributions to the Fund.
The Income Tax Assessment Acts (1997) set out the general rule for non-concessional contributions in SECT 292.85.
From 1 July 2017 to 30 June 2021, the non-concessional contributions cap is $100,000.
From 1 July 2021 to 30 June 2024, the ATO have changed the non-concessional contributions cap to $110,000.
From 1 July 2024, the ATO have changed the non-concessional contributions cap to $120,000.
For a detailed table regarding the previous contribution caps, please see below:
| Contribution |
Cap to 30 Jun 2021 |
Cap from 1 Jul 2021 onwards |
Cap from 1 Jul 2024 onwards |
| Concessional |
$25,000 |
$27,500 |
$30,000 |
| Non-Concessional (NCC) |
$100,000 |
$110,000 |
$120,000 |
| Bring-forward maximum |
$300,000 |
$330,000 |
$360,000 |
|
From 1 July 2024, Members have the option of utilising the Bring Forward Rule to contribute up to $360,000 over a three-year period, depending on their total superannuation balance and their age. The contribution cap will reduce for Members with high total super balance on 30 June of previous year (i.e more than $1.68 million). Please see the Bring Forward Rule button below for further guidance.
