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Super

Non-concessional contributions

After-tax money you put into super yourself, with no contributions tax charged on the way in.

Non-concessional contributions come from money you have already paid income tax on. Because the tax has been paid, the fund does not charge the 15% contributions tax when it arrives.

The annual cap is $120,000 for FY2025-26, considerably higher than the concessional cap. If you are under 75 and meet the balance conditions, the bring-forward rule lets you contribute up to $360,000 in one year by using three years of cap.

These contributions form the tax-free component of your super. That matters for estate planning, because the tax-free component can pass to non-dependant beneficiaries such as adult children without the death benefits tax that applies to the taxable component.

Using the bring-forward rule

Selling an investment property leaves you with $300,000. Rather than contributing $120,000 a year for three years, the bring-forward rule lets you place the lot into super in a single year.

The bit people get wrong

Once your total super balance reaches the general transfer balance cap, your non-concessional cap drops to nil. Contributing anyway triggers an excess that must be withdrawn, along with tax on the associated earnings.

Common questions

Is there any tax on non-concessional contributions?

No contributions tax applies, because you already paid income tax on the money. Earnings the contribution then generates inside the fund are taxed at up to 15%.

Can I claim a deduction for them?

No — claiming a deduction converts the contribution into a concessional one, counted against the $30,000 cap and taxed 15% inside the fund.

Who benefits most from after-tax contributions?

People near retirement with capacity to contribute, those who have received an inheritance or sale proceeds, and anyone wanting to build the tax-free component for estate planning reasons.

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