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 2026, the Non-Concessional Contribution cap is $130,000 per year for each Member.
From 1 July 2026, individuals who hold a superannuation balance of more than $2.1 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.
A summary of Non-Concessional Contribution Caps, including current and previous Contribution Caps, are detailed below:
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From 1 July 2026, Members have the option of utilising the Bring Forward Rule to contribute up to $390,000 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 $2.1 million). Please see the Bring Forward Rule button below for further guidance.
Excess Non-Concessional Contributions
If you exceed your non-concessional contributions cap, the ATO will issue a determination. From the date of that notice, you have 60 days to choose between two options:
Option 1: Release the excess and associated earnings
You can withdraw your excess concessional contributions plus 85% of the associated earnings from your super fund.
If you do, the associated earnings will be included in your personal income tax assessment and you will receive a 15% non-refundable tax offset on those earnings.
Option 2: Leave the excess in super and pay excess non-concessional contributions tax
If you choose to keep the excess in your Fund, the ATO will issue an excess non-concessional contributions tax assessment. The excess amount will be taxed at the highest marginal tax rate plus the Medicare levy (currently 47%). You can elect to have this tax paid from your super fund.
If you do not make a choice within 60 days of receiving the determination, the ATO will automatically apply Option 1.
For more information on other types of Contributions, please see our Contributions page.