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. 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.
Non-Concessional Contribution Cap Table
|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 view the Tax Office video on Non-Concessional Contributions and the workings of the 3 year bring forward rule:
For more information on other types of Contributions, please see our Contributions page.