Non-Concessional Contributions Explained

In addition to your annual $25,000 concessional contribution limit you also have a $100,000 non-concessional contribution limit. Non-concessional contributions are also known as after-tax contributions, so they are taxed at your marginal tax rate (vs concessional contributions which incur only 15% tax). The following benefits may be available to you if you make non-concessional contributions:

$3,000 spouse contribution

If your spouse earns less than $37,000 p.a. you can transfer $3,000 into their super account and receive a tax rebate up to $540. Read more about spouse contributions here.

$500 government co-contribution

If you have an income of less than $54,837 in the 2020/21 financial year, your super account could receive up to $500 in the form of a co-contribution from the government. Read more about the government co-contribution here.

Downsizer contributions

If you have sold your home, that you have owned for 10 years, and you are over 65 years of age you may be able to contribute up to $300,000 to your super per person (i.e. $600,000 for a couple) within 90 days of the sale. This can provide access to the tax-free pension phase of superannuation. Read more about downsizer contributions here.

Compare Concessional vs Non-concessional caps
Contribution type Your age Contributions cap
Concessional All $25,000 a year
Non-concessional Under 65* $100,000 a year and up to three years of annual caps ($300,000) under bring-forward rules
65 or over* $100,000 a year

 

Are you eligible to make contributions?

Not everyone is eligible to make contributions so check the table below to see if you are. Remember to ensure you don’t exceed your annual contribution limits of $25,000 for concessional contributions and $100,000 for non-concessional), as well as the total superannuation balance limit of $1.6 million.

Age Employer Super Guarantee Employer Voluntary Member Spouse
Under 67 At any time At any time At any time At any time
67 to 74 At any time Work test required Work test required Work test required
75 and over At any time Not permitted1 Not permitted2 Not permitted

 Note: to pass the work test you must be gainfully employed at least 40 hours in any 30 consecutive day period during the financial year in which the contribution is made.

1 The age-based contribution restrictions do not apply to downsizer contributions (except you must be over age 65).
2 A contribution may be accepted up to 28 days after the month in which the member turns 75.

 

Worried about cash flow?

If you have met preservation age and need an income from your super, but you do not meet the conditions for the release of your super, you might consider opening a Transition to Retirement account. To do this, you need to have reached your preservation age, which is currently 58 years. Contact our Member Care Team or check out our Pension Guide if you would like more information about this strategy.

 

Questions?

Remember, our Member Care Team are always happy to help and are available between 9am and 6pm Monday to Friday. You can call the team on 1300 360 907 or email us at members@christiansuper.com.au.

 

Disclaimer: The content of this article includes advice that is general in nature and does not consider your personal situation. Christian Super encourages all people considering their options in retirement planning to seek out qualified professionals who can provide specific personal advice. Click here

 

This is part of our 3-part series on contributions. Click on the links to read more:

  1. Your Guide to Super Contributions
  2. Concessional Contributions Explained
  3. Non-Concessional Contributions Explained