• Excluded contributions

    Paragraph 292-25(2)(c)External Link specifically excludes the following amounts from a person's concessional contributions (even though these contributions might be assessable income of the fund):

    • roll-over super benefits to the extent that they consist of an element untaxed in the fund, and is not an excess untaxed rollover amount for the person
    • the amount of a super benefit transferred from a foreign super fund to an Australian complying super fund specified in a choice made by the former member of the foreign fund under section 305-80External Link - for more information, see Foreign super fund transfers
      • this amount generally reflects investment earnings on overseas super benefits while the person was an Australian resident
      • there may be an assessable component of the transfer that does count towards the person's concessional contributions
      • any contributions made to CPFs.

    The taxable component of a super benefit made by a CPF can only consist of an element untaxed in the fund, which is subject to separate tax arrangements.

    End of attention

    In addition to these exclusions, section 292-25External Link of the Income Tax (Transitional Provisions) Act 1997 (IT(TP)A) states that the following components of a directed termination payment are not included as concessional contributions:

    • tax-free component
    • taxable component to the extent it does not exceed $1 million.

    The $1 million is a lifetime cap and is reduced by the taxable component of each transitional termination payment made to a person during the period:

    • starting on 1 July 2007
    • ending just before the directed termination payment is made.

    This provision applies only until 30 June 2012. Employer termination payments will not be able to be rolled over into super from 1 July 2012.

    End of attention

    For more information, see:

      Last modified: 22 Nov 2013QC 34181