A Non-Concessional Contribution is after tax money that Members contribute to their SMSF. These contributions are not taxed in your Super Fund, as it has already been taxed in a personal capacity.
There are caps on the Non-Concessional Contributions you can contribute to your SMSF each financial year. If you go over the cap, you may have to pay penalty tax on the excess contribution. From 1 July 2017, the Non-Concessional Contribution cap is reduced from $180,000 to $100,000 per year for each Member. Individuals who hold a superannuation balance of more than $1.6 million cannot make any further Non-Concessional Contributions to the Fund as of 1 July 2017.
From 1 July 2017, the ATO have changed the non-concessional contributions cap to $100,000. The non-concessional contribution cap applies to all financial years post 1 July 2017. For a detailed table regarding the previous non-concessional contribution caps, please see below.
|Financial year||Non-Concessional Cap||Tax on amounts over cap|
|2016–17||$180,000||47% (plus 2% budget repair levy)|
|2015–16||$180,000||47% (plus 2% budget repair levy|
|2014–15||$180,000||47% (plus 2% budget repair levy)|
Members under 65 years of age will have the option of utilising the Bring Forward Rule to contribute up to $300,000 over a three-year period, depending on their total superannuation balance. Please see the Bring Forward Rule button below for further guidance.
For more information on other types of Contributions, please see our Contributions page.