Non-concessional contributions

Non-concessional contributions are called this because the contributor is not entitled to a tax concession for making the contribution. Non-concessional contributions are not subject to the 15% tax payable by the fund on assessable contributions and are most commonly known as after-tax contributions.

Non-concessional contributions are defined in section 292-90External Link. Unless specifically excluded, they are:

  • contributions made by or for a person that are not included in the assessable income of a super fund (that is, personal contributions that are not allowable as an income tax deduction)
  • the amount of excess concessional contributions (if any) for that financial year
  • additional amounts allocated to a person by the super fund that are not assessable income of the provider
  • spouse contributions, unless the spouse is the person's employer
  • contributions made for a person less than 18 years old that are not made by their employer
  • the amount of any contribution made for the person that is covered by a valid and acknowledged notice under section 290-170External Link, to the extent that it is not allowable as a deduction for the person making the contribution
  • contributions in excess of a person's lifetime CGT cap amount
  • amounts transferred from foreign super funds, excluding amounts included in the fund's assessable income
  • a contribution included in the contributions segment of the member's super interest in a CPF
  • a contribution made on or after 10 May 2006 to a fund while it was non-complying but which has now become complying.

Section 292-90External Link also specifically excludes the following contributions from being non-concessional contributions:

  • government co-contributions
  • certain contributions arising from structured settlements or orders for personal injuries
  • certain contributions relating to some CGT small business concessions (that do not exceed the CGT cap amount when they are made)
  • contributions made to a CPF (other than a contribution included in the contributions segment of the member's super interest in the fund)
  • contributions not included in the assessable income of a public sector super scheme because of a choice made by the trustee under section 295-180External Link
  • a roll-over super benefit
  • the tax-free component of a directed termination payment
  • amounts not included in a fund's assessable income because of Subdivision 295-D (that is, transfer of tax liabilities to an investment vehicle).

For more information on personal injury payments, see Personal injury payments.

    Last modified: 22 Nov 2013QC 34181