Making contributions to SMSFs
A member whose total contributions exceed the contribution caps in a year may be liable for additional tax on the excess contributions. Contribution caps are indexed annually.
There are minimum standards for accepting contributions into your SMSF and the trust deed of your fund may have more rules.
See more about what is included in member contributions and meeting the work test.
Concessional contributions
Concessional contributions are contributions made into your SMSF that are included in the SMSF's assessable income. These contributions are taxed in your SMSF at a ‘concessional’ rate of 15%, which is often referred to as ‘contributions tax’.
The most common types of concessional contributions are employer contributions, such as super guarantee and salary sacrifice contributions. Concessional contributions also include personal contributions made by the member for which the member claims an income tax deduction.
Concessional contributions are subject to a yearly cap:
- From 1 July 2024, the general concessional contributions cap is $30,000 for all individuals regardless of age.
- For the 2021-22, 2022-23 and 2023-24 financial years, the general concessional contributions cap was $27,500 for all individuals regardless of age.
- For the 2017–18, 2018–19, 2019–20 and 2020–21 financial years, the general concessional contributions cap was $25,000 for all individuals regardless of age.
- For the 2014–15, 2015–16 and 2016–17 financial years, the concessional contributions cap was $30,000 per financial year and is increased to $35,000 for members 49 or over.
- For the 2013–14 financial year onwards, excess concessional contributions are no longer subject to excess contributions tax. If a member's contributions exceed the cap, the amount will be included in the member's assessable income and taxed at their marginal tax rate.
Unused concessional cap carry forward
From 1 July 2018, members can make 'carry-forward' concessional super contributions if they have a total superannuation balance of less than $500,000. Members can access their unused concessional contributions caps on a rolling basis for 5 years. Amounts carried forward that have not been used after 5 years will expire.
For example, a 2019–20 unused cap amount that is not used by the end of 2024–25 will expire.
Non-concessional contributions
Generally, non-concessional contributions are contributions made into your SMSF that are not included in the SMSF's assessable income.
Non-concessional contributions include:
- personal contributions made by the member for which no income tax deduction is claimed - this is the most common type of non-concessional contribution
- excess concessional contributions for the financial year which the member does not elect to remove from the superfund after we send them an excess contributions determination will also count towards your member’s non-concessional contributions cap.
Non-concessional contributions do not include:
- super co-contributions
- structured settlements
- orders for personal injury or capital gains tax (CGT) related payments that the member has validly elected to exclude from their non-concessional contributions
- re-contribution of COVID-19 early release superannuation amounts made between 1 July 2021 and 30 June 2030. Individuals can re-contribute amounts they withdrew under the COVID-19 early release of super program without them counting towards their non-concessional contributions cap.
If a member’s non-concessional contributions exceed the cap, a tax of 47% is levied on the excess contributions. Individual members are personally liable for this tax and must have their super fund release an amount of money equal to the tax.
From 1 July 2024
From 1 July 2024, the non-concessional contributions cap is $120,000. Members under 75 years of age may be able to make non-concessional contributions of up to 3 times the annual non-concessional contributions cap in a single year.
If eligible, when you make contributions greater than the annual cap, you automatically gain access to future year caps. This is known as the ‘bring-forward’ option.
Bring-forward arrangements
From the 2022–23 financial year members who are under 75 may be able to access a bring-forward arrangement as outlined in the table below.
Total superannuation balance as at 30 June of the prior financial year | Contribution and bring-forward available |
|---|---|
Less than $1.66 million | Access to $360,000 cap (over 3 years) |
Greater than or equal to $1.66 million and less than $1.78 million | Access to $240,000 cap (over 2 years) |
Greater than or equal to $1.78 million and less than $1.9 million | Access to $120,000 cap (no bring-forward period, general non-concessional contributions cap applies) |
Greater than or equal to $1.9 million | Nil |
See more on bring-forward arrangements.
1 July 2021 to 30 June 2024
For the 2021-22, 2022-23 and 2023-24 financial years, the non-concessional contributions cap was $110,000.
1 July 2017 to 30 June 2021
For the 2017–18, 2018–19, 2019–20 and 2020–21 financial years, the non-concessional contributions cap was $100,000.
1 July 2014 to 30 June 2017
For the 2014–15, 2015–16 and 2016–17 financial years, non-concessional contributions were subject to a yearly cap of $180,000 for members 65 or over but under 75 or $540,000 over a 3-year period for members under 65.
Transitional arrangements apply to individuals who brought forward their non-concessional contributions cap in the 2015–16 or 2016–17 financial years.