Non-concessional contributions

Non-concessional is a special term associated with after-tax super contributions. Concessional is a term used to describe favourable tax treatment. For example, earnings in superannuation funds receive concessional tax treatment. The term 'concessional contributions' means that such contributions receive special tax treatment.

Non-concessional contributions are after-tax contributions including spouse contributions and contributions made under the Super Co-contribution Scheme. Non-concessional contributions were previously known as undeducted contributions.

Set out below are all SuperGuide articles explaining Non-concessional contributions.

Super for beginners, part 17: Four must-knows about super’s tax rules

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Q: I am trying to understand how my super is taxed and it seems that it is taxed at every turn. Can you please explain when, and how, a super benefit is taxed? A: If it were not for tax, superannuation wouldn’t exist. You would simply invest in your own name. Superannuation is taxed at lower … [Read more...]

Cashing in on the co-contribution rules (2015/2016 year)

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Note: This article explains the co-contribution rules for the 2015/2016 year (and later in the article, also for the 2014/2015, 2013/2014, 2012/2013 and 2011/2012 years). The federal government is giving away money to anyone who makes a non-concessional (after-tax) contribution to their super … [Read more...]

Super concessional contributions: 2015/2016 survival guide

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Superannuation contributions can be divided into two types — concessional (before-tax) and non-concessional (after-tax). Each type of super contribution is subject to a contributions cap. A contributions cap sets a limit on the amount of contributions you can make in any one year. This article … [Read more...]

Your 2015/2016 guide to non-concessional (after-tax) contributions

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Non-concessional superannuation contributions are more popularly known as after-tax contributions. You may even hear them called ‘undeducted’ contributions. Such super contributions are subject to a contributions cap, which sets a limit on the amount of non-concessional (after-tax) contributions … [Read more...]

Bring-forward rule: 10 facts you should know

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I receive a lot of questions from readers seeking information about how the non-concessional (after-tax) rules work; in particular, how the bring-forward rules works. The bring-forward rule works over a 3-year period so it is very important that you keep track of the size and timing of any … [Read more...]

Super contributions: Beef up using a bring forward

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Q: Under the 2-year bring-forward of non-concessional contributions, if a person makes an after-tax contribution of $180,001 when age 64 during the 2014/2015 year, can he continue to contribute the balance of the $540,000 anytime during the next 2 years without having to satisfy the work … [Read more...]

Turning 65: Maxing out the after-tax contributions cap

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Q: If you turn 65 and retire after 1 July 2015, can you still make the $540,000 bring-forward non-concessional contribution as long as you make the contribution before 30 June 2016? Or do you have to satisfy the work test to do so? Answer: For the benefit of other readers, I’ll first explain the … [Read more...]

Super contributions: Turning 65 part-way through the year

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Q: I turn 65 in January 2016. So I will be 64 years of age for a large part of the 2015/2016 financial year, but of course I turn 65 during the 2015/2016 financial year, that is, in January 2016. My understanding is that because I will be under 65 for part of the 2015/2016 financial year then I can … [Read more...]

Superannuation contributions: Wearing two caps

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Q: Are the caps relating to ‘concessional’ and ‘non-concessional’ contributions regarded as separate? Put simply, can I contribute $30,000 concessional and $540,000 non-concessional sums (a total contribution of $570,000) to my super fund for the 2014/2015 year, or for the 2015/2016 year? A: … [Read more...]

Does the Government’s co-contribution count towards my contributions cap?

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Q: Does a co-contribution received after using up the total bring forward cap of $540,000 mean that an excess contribution has been made, or is the Government co-contribution excluded from the after-tax contribution cap? A: A superannuation co-contribution is a tax-free super contribution paid by … [Read more...]