Show download pdf controls
  • Conclusion

    Concessional contributions are generally contributions made from before-tax income and are included in the super fund’s assessable income. Common concessional contributions include SG contributions and contributions for which the contributor is entitled to a deduction.

    Non-concessional contributions are generally after-tax contributions. Common non-concessional contributions include any amount of ECC for that income year that have not been released from a super fund and contributions that are not included in the assessable income of the super fund.

    The general concessional contributions cap is $25,000 for the 2013–14 income year and $30,000 for the 2014–15 income year. A higher temporary concessional cap of $35,000 is available for some people based on their age. The non-concessional contributions cap is $150,000 for the 2013–14 income year and $180,000 for the 2014–15 income year.

    For the 2013–14 and later income years, ECC are included in a person’s assessable income and taxed at their marginal tax rate. In addition, an ECC charge is applied to recognise that the tax on ECC is collected later than normal income tax. A person is able to choose to pay their liability from their own sources or release an amount up to 85% of their ECC from their super funds. They will also receive a non-refundable tax offset for 15% of their ECC. A person’s non concessional contributions are reduced by 100/85 of the amount of any ECC released from their super funds.

    For the 2013–14 and future income years, a person may choose how their ENCC are taxed. Where they choose not to release the full amount of ENCC they will receive an ENCC tax assessment. Where they choose to release the total release amount from super or where they choose not to release the amount because the value of their superannuation interests is nil, an amount of associated earnings is included in their assessable income. They will also receive a non-refundable tax offset for 15% of their associated earnings. Where the value of a person’s super interests are nil we can make a direction and they will be treated as if they have no ENCC for the contribution year.

    We can make a written determination to disregard all or part or a person’s concessional and/or non-concessional contribution or allocate it to a different income year. Where we decide to disregard an amount, it will not be counted towards the relevant contributions cap for any income year. If an amount is allocated to another income year, the amount will be counted towards the relevant contributions cap for the income year to which it is reallocated.

    A person may object to:

    • their NOA or NOAA (which includes their ECC or ENCC)
    • their ECC or ENCC determination
    • their ENCC tax assessment
    • a Commissioner’s discretion decision or a decision not to exercise a discretion
    • a direction (that super interests are nil) or a decision not to make a direction.
      Last modified: 28 Mar 2018QC 50732