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 2024, the Non-Concessional Contribution cap is $120,000 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.
The current non-concessional contributions cap is $120,000 per year and was increased from $100,000 in previous years per the summary below:
From 1 July 2017 to 30 June 2021, the non-concessional contributions cap was $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:
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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.
For more information on other types of Contributions, please see our Contributions page.
We are Melbourne based with clients throughout Australia. Our SMSF administration service is mostly paperless. This enable us to charge a fair fee, resulting in a good value-proposition for you.
Superannuation Warehouse is an accounting firm and do not provide financial advice. All information provided has been prepared without taking into account any of the Trustees’ objectives, financial situation or needs. Because of that, Trustees are advised to consider their own circumstances before engaging our services.
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