Contributions caps and taxation of contributions
What is a non-concessional contribution?
Contributions for which a tax deduction is not available are called non-concessional contributions (NCCs).
A non-concessional contribution is generally a super contribution made to a complying super fund which is not included in the super fund's assessable income.
Contributions included in the non-concessional contributions cap
|Personal contributions for which no valid deduction notice is submitted and acknowledged; or where a valid deduction notice is submitted but a tax deduction is unable to be claimed or is denied.|
|Excess concessional contributions1.|
|Spouse contributions (counted toward receiving spouse's cap).|
|Contributions made on behalf of a child under age 18 by anyone other than the child's employer. (counted towards receiving child's cap).|
|100% of transfers of overseas pensions into Australian super funds within six months of Australian residency.|
|A portion of transfers of overseas pensions into Australian super funds after six months of Australian residency. The portion included is: (gross transfer - applicable fund earnings) (see section 10.5).|
|Proceeds from the sale of a small business that are contributed to super if the amount did not qualify for the 15-year or retirement CGT small business exemptions.|
|Contributions that are included in the assessable income of a fund but for which a tax deduction was disallowed by the ATO.|
|Any contributions made after 10 May 2006 to a fund while it was non-complying are counted to the member's non-concessional cap in the year the fund regains its complying status.|
|Non-assessable contributions allocated to a reserve, then allocated to the member's benefits in accordance within the time-frame specified in the SIS Regulations.|
Note: First Home Super Saver contributions will fall into one of the categories of concessional contributions or non-concessional contributions, and as such, will count towards the member's normal contributions caps.
Non-concessional cap exclusions
The following contributions are specifically excluded from the definition of non-concessional contributions.
|Low income superannuation tax offset contributions|
|Rollovers within the Australian super system.|
|Contribution of proceeds from the disposal of small business assets that qualify to be counted towards, and don't exceed, the lifetime CGT cap of $1.515 million.|
|Contributions to constitutionally protected funds other than contributions included in the contributions segment.|
|Contributions arising from structured settlements or orders for personal injuries.|
|An amount that a trustee of a public sector super scheme, that came into operations before 5 September 2006, chooses to not be included in its assessable income.|
Last modified: Wednesday, July 24, 2019