Concessional contributions

Concessional contributions are generally contributions for which the contributor is allowed to claim a tax deduction.

Concessional contributions are defined in section 292-25External Link as contributions made to a complying super fund, for a person, that are included in the assessable income of a super fund.

Generally the types of contributions included in the assessable income of a fund are:

  • contributions made on behalf of someone else (for example, by an employer for an employee, including super guarantee (SG) and amounts specified in an effective salary sacrifice agreement)
  • contributions made for which the contributor is allowed a deduction
  • certain amounts transferred from a foreign super fund to an Australian one.

Concessional contributions generally do not include contributions for a:

  • spouse under section 295-165External Link
  • child under 18 years old, unless the spouse or child is an employee of the contributor in accordance with section 295-170External Link
  • rollover super benefit that consists of an element untaxed in the fund that is not an excess untaxed roll-over amount
  • amount assessable to the complying super fund as a result of any transfers from foreign super funds
  • contribution made to a constitutionally protected fund (CPF).

Concessional contributions are included in the assessable income of a complying super entity and are taxed at 15%.

    Last modified: 22 Nov 2013QC 34181