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Contributions caps and taxation of contributions

What is a non-concessional contribution?

Section: 5.17

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.

Downsizer contributions
Government co-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