Concessional contributions generally include contributions that are included in the assessable income of the super fund. However, subparagraph 292-25(2)(c)(i)External Link specifically excludes amounts included in the fund's assessable income because of a choice made under section 305-80External Link.
This exclusion does not extend to contributions that would have also been included in the assessable income of the fund because it was not vested in the member at the time of the transfer.
Contributions chosen under section 305-80External Link are not counted as concessional contributions and are also not counted as non-concessional contributions because they continue to be assessable income of the fund. The remainder of the amount of the transfer that is not assessable income of the fund is a non-concessional contribution.
These mean that a contribution made to an Australian complying super fund from a foreign super fund may consist of up to three components.
That is, the part that is:
- assessable to the fund because of a choice made by the member under section 305-80External Link and is not included in concessional or non-concessional contributions
- assessable to the fund because it was not vested in the member at the time of the transfer and is included in the person's concessional contributions
- not assessable income of the fund and which is included in the person's non-concessional contributions.
Transfers from overseas super funds are member contributions, as defined in SISR, and are therefore subject to the fund-capped contribution limits.
A fund cannot accept any single contribution, including from a foreign super fund, which is greater than the fund-capped contribution limit for the member.