Excess concessional contribution charge
The excess concessional contributions (ECC) charge is applied to the additional income tax liability that comes from including excess concessional contributions in your income tax return as taxable income.
The intent of the ECC charge is to acknowledge that the tax is collected later than normal income tax.
The charge is:
- payable for the year you make excess concessional contributions
- applies from the 2013–14 income year until the 2020-21 income year.
Individuals who make contributions on or after 1 July 2021 that exceed their cap, will no longer be liable to pay the ECC charge.
The ECC charge period was previously calculated from the start of the income year in which the excess concessional contributions were made and ends the day before the tax is due to be paid under your first income tax assessment for that year.
The formula for calculating the ECC charge used a base interest rate for the day plus an uplift factor of 3%. The base interest rate is the monthly average yield of 90-day Bank Accepted Bills published by the Reserve Bank of Australia.
This compounding interest formula was applied against the base amount (the additional income tax liability) for each day of the ECC charge period.
The ECC charge rates prior to 1 July 2021 were updated quarterly and are listed in the table below.
Table 3: Excess concessional contribution charge rates
Quarter
|
Annual rate
|
Daily rate
|
April – June 2023
|
6.46%
|
0.017698630136986%
|
January – March 2023
|
6.06%
|
0.016602739726027%
|
October – December 2022
|
5.31%
|
0.014547945205480%
|
July – September 2022
|
4.00%
|
0.010958904109589%
|
April – June 2022
|
3.07%
|
0.008410958904110%
|
January – March 2022
|
3.04%
|
0.008328767123288%
|
October – December 2021
|
3.01%
|
0.008246575342466%
|
July – September 2021
|
3.04%
|
0.008328767123288%
|
April – June 2021
|
3.01%
|
0.008246575342466%
|
January – March 2021
|
3.02%
|
0.008273972602739%
|
October – December 2020
|
3.10%
|
0.008469945355191%
|
July – September 2020
|
3.10%
|
0.008469945355191%
|
April – June 2020
|
3.89%
|
0.010628415300546%
|
January – March 2020
|
3.91%
|
0.010683060109290%
|
October – December 2019
|
3.98%
|
0.010904109589041%
|
July – September 2019
|
4.54%
|
0.012438356164384%
|
April – June 2019
|
4.96%
|
0.013589041095890%
|
January – March 2019
|
4.94%
|
0.013534246575342%
|
October – December 2018
|
4.96%
|
0.013589041095890%
|
July – September 2018
|
4.96%
|
0.013589041095890%
|
April – June 2018
|
4.77%
|
0.013068493150685%
|
January – March 2018
|
4.72%
|
0.012931506849315%
|
October – December 2017
|
4.70%
|
0.012876712328767%
|
July – September 2017
|
4.73%
|
0.012958904109589%
|
April – June 2017
|
4.78%
|
0.013095890410959%
|
January – March 2017
|
4.76%
|
0.013041095890411%
|
October – December 2016
|
4.76%
|
0.013005464480874%
|
July – September 2016
|
5.01%
|
0.013688524590164%
|
April – June 2016
|
5.28%
|
0.014426229508197%
|
January – March 2016
|
5.22%
|
0.014262295081967%
|
October – December 2015
|
5.14%
|
0.014082191780822%
|
July – September 2015
|
5.15%
|
0.014109589041096%
|
April – June 2015
|
5.36%
|
0.014684931506849%
|
January – March 2015
|
5.75%
|
0.015753424657534%
|
October – December 2014
|
5.63%
|
0.015424657534247%
|
July – September 2014
|
5.69%
|
0.015589041095890%
|
April – June 2014
|
5.63%
|
0.015424657534247%
|
January – March 2014
|
5.59%
|
0.015315068493151%
|
October – December 2013
|
5.60%
|
0.015342465753425%
|
July – September 2013
|
5.82%
|
0.015945205479452%
|
For more information, see Super contributions – too much can mean extra tax.
Non-concessional contributions cap
Non-concessional contributions include personal contributions for which you do not claim an income tax deduction.
If you have more than one fund, all non-concessional contributions made to all of your funds are added together and counted towards the non-concessional contributions cap.
Table 4: Non-concessional contributions cap
Income year
|
Amount of cap
|
2023–24
|
$110,000 see Note 1
|
2022–23
|
$110,000 see Note 1
|
2021–22
|
$110,000 see Note 1
|
2020–21
|
$100,000 see Note 1
|
2019–20
|
$100,000 see Note 1
|
2018–19
|
$100,000 see Note 1
|
2017–18
|
$100,000 see Note 1
|
2016–17
|
$180,000
|
2015–16
|
$180,000
|
2014–15
|
$180,000
|
2013–14
|
$150,000
|
2012–13
|
$150,000
|
2011–12
|
$150,000
|
2010–11
|
$150,000
|
2009–10
|
$150,000
|
2008–09
|
$150,000
|
2007–08
|
$150,000
|
Note 1: The non-concessional cap for an income year is a multiple of the concessional contributions cap.
From 1 July 2017, your non-concessional cap is nil for a financial year if, at the end of the previous financial year, you have a total superannuation balance greater than or equal to the general transfer balance cap. In this case, if you make non-concessional contributions in that year, they will be excess non-concessional contributions.
Note: The total superannuation balance cap is $1.6 million between 1 July 2017 and 30 June 2021 and has increased to $1.7 million from 1 July 2021.
From the 2020-21 financial year if you are under 67 years old (for prior years the age restriction was 65), you may be able to make non-concessional contributions of up to 3 times the annual non-concessional contributions cap in a single year. If eligible, when you make contributions greater than the annual cap, you automatically gain access to future year caps. This is known as the ‘bring-forward’ option.
From 1 July 2017 your total superannuation balance at the end of the previous financial year will determine:
- the non-concessional contributions cap you can bring-forward and
- whether you have a 2-year or 3-year bring-forward period.
If you enter a bring-forward arrangement in either the 2012–13 or 2013–14 financial year you will have a $450,000 cap over 3 years; however in the 2014–15 financial year, your bring-forward cap is $540,000.
From 1 July 2017 the bring-forward amount and period depends on your total superannuation balance on the day before the financial year contributions that trigger the bring forward.
Transitional period transitional arrangements apply if you triggered a bring forward in either the 2015–16 or 2016–17 financial years. If you have triggered a bring forward before 1 July 2017 and you have not fully utilised your bring-forward cap before 1 July 2017, your cap was reassessed on 1 July 2017 to reflect your new annual cap.
During the transitional periods, contributions made prior to 1 July 2017 will affect your total non-concessional contributions capacity over the following 2 years.
Associated earnings rate (for excess non-concessional contributions)
Individuals have the option of electing to release non-concessional superannuation contributions made from 1 July 2013 which are in excess of the non-concessional contributions cap for 2013–14 and future income years.
An associated earnings amount is calculated to approximate the amount earned while excess non-concessional contributions were held in the superannuation fund. This is included in the individual’s assessable income.
Table 5: Associated earnings rates
Income year
|
Annual rate
|
Associated earnings rate / daily rate
|
2022–23
|
9.46%
|
0.02591781%
|
2021–22
|
7.04%
|
0.01928767%
|
2020–21
|
7.06%
|
0.01934247%
|
2019–20
|
8.08%
|
0.02207650%
|
2018–19
|
8.96%
|
0.02454795%
|
2017–18
|
8.73%
|
0.02391780%
|
2016–17
|
8.83%
|
0.02419178%
|
2015–16
|
9.20%
|
0.02513661%
|
2014–15
|
9.61%
|
0.02632876%
|
2013–14
|
9.66%
|
0.02646575%
|
Transitional arrangement for the non-concessional contributions cap between 10 May 2006 and 30 June 2007
Between 10 May 2006 and 30 June 2007, you could contribute up to $1 million of non-concessional contributions to your super fund. This limit was referred to as the transitional non-concessional contributions cap. If you had more than one fund, all non-concessional contributions made to all your funds were added together and counted towards the cap.
However, the following contributions were excluded from the $1 million transitional non-concessional contributions cap:
- contributions arising from personal injury payments
- up to $1 million of contributions derived from the disposal of certain small business assets – these contributions were subject to the capital gains tax (CGT) cap.
CGT cap amount
Under the CGT cap, you can during your lifetime, exclude non-concessional super contributions from your non-concessional contributions cap up to the CGT cap amount. The CGT cap applies to all excluded CGT contributions, whether they were made between 10 May 2006 and 30 June 2007 or after 30 June 2007.
Table 6: CGT cap amount
Income year
|
Amount of cap
|
2023–24
|
$1,705,000
|
2022–23
|
$1,650,000
|
2021–22
|
$1,615,000
|
2020–21
|
$1,565,000
|
2019–20
|
$1,515,000
|
2018–19
|
$1,480,000
|
2017–18
|
$1,445,000
|
2016–17
|
$1,415,000
|
2015–16
|
$1,395,000
|
2014–15
|
$1,355,000
|
2013–14
|
$1,315,000
|
2012–13
|
$1,255,000
|
2011–12
|
$1,205,000
|
2010–11
|
$1,155,000
|
2009–10
|
$1,100,000
|
2008–09
|
$1,045,000
|
2007–08
|
$1,000,000
|
The CGT cap amount is indexed in line with average weekly ordinary time earnings (AWOTE), in increments of $5,000 (rounded down). The new indexed amount is generally available each February.
For more information about the contribution caps, see Super contributions – too much can mean extra tax.
Last modified: 05 Apr 2023QC 18123