Concessional contributions

Concessional contributions are contributions made that are included in the SMSF's assessable income. These contributions are taxed in your SMSF at a ‘concessional’ rate of 15%.

This is often called ‘contributions tax’, and the current concessional contributions cap is $27,500. The most common types of concessional contributions are those made by an employer, such as super guarantee and salary sacrifice contributions.

Concessional contributions include: 

  • Compulsory employer contributions.

  • Additional concessional contributions your employer makes.

  • Salary sacrifice payments.

  • Administration fees and insurance premiums.

Concessional contributions also include personal contributions when the member claims an income tax deduction.

Non-concessional contributions

Non-concessional contributions include personal contributions made by the member for which no income tax deduction is claimed.

On the other hand, 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.

Contribution type

Cap from 1 July 2021

Tax rate period

Concessional

$27,500 per year

Plus carry forward amounts since 1 July 2018.

15% contributions tax

or 30% contributions tax if your income plus contributions is more than $250,000 per year

Non-concessional

$110,000 per year

No contributions tax - but you do pay your normal income tax, which can be up to 47%

Source: ABS

What is the carry-forward rule?

If your total super balance is less than $500,000 at 30 June, you can ‘carry forward’ any concessional contributions over a five year period.

This means if you don’t use the full amount of your concessional contribution cap ($27,500 in 2021-22), you can carry forward the unused portion up to five years later.

Carry forward amounts expire after five years if you haven't used them.

What is the bring-forward rule?

If you’re under age 67, you can bring forward up to three times your non-concessional (after-tax) contribution cap – up to $330,000.

However, once you turn 67, you will need to meet the work test or work test exemption to make your own contributions to your super.

Caps

Your cap may be higher if you did not use the full amount of your cap in earlier years. This is called the carry-forward of unused concessional contributions.

You can check your available concessional contributions cap on ATO online services (accessed via myGov).

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Looking to take control of your retirement? This table below features SMSF loans with some of the most competitive interest rates on the market.

Rates
Features
Fees
Other
Lender
VariableMore details
Includes NOV RBA Rate Increase
  • Refinance only offer. No application fee and no settlement fee
  • No monthly, annual or ongoing fees
  • Access your SMSF loan via our easy-to-use online app Smart Money
Includes NOV RBA Rate Increase

loans.com.au – SMSF 70

  • Refinance only offer. No application fee and no settlement fee
  • No monthly, annual or ongoing fees
  • Access your SMSF loan via our easy-to-use online app Smart Money
More details
VariableMore details
  • Fully functioning offset.
  • Rapid Refinance available - receive approval in as little as 48hrs
  • 50m2 of beach & coastline cleaned with every loan settled.

WLTH – Ocean SMSF 60 P&I ($50k - $2m)

  • Fully functioning offset.
  • Rapid Refinance available - receive approval in as little as 48hrs
  • 50m2 of beach & coastline cleaned with every loan settled.
More details
VariableMore details

Reduce Home Loans – Capitalizer SMSF 70 Metro

    More details
    VariableMore details

    Firstmac – SMSF 70 (Refinance Special)

      More details
      VariableMore details

      Liberty Financial – Liberty Residential SMSF (LVR < 80%)

        More details
        VariableMore details

        La Trobe Financial – SMSF Residential

          More details
          VariableMore details

          Yard – SMSF Loan (Principal and Interest) (LVR < 80%)

            More details
            VariableMore details
            • Fully functioning offset.
            • Rapid Refinance available - receive approval in as little as 48hrs
            • 50m2 of beach & coastline cleaned with every loan settled.

            WLTH – Ocean SMSF 80 P&I ($50k - $2m)

            • Fully functioning offset.
            • Rapid Refinance available - receive approval in as little as 48hrs
            • 50m2 of beach & coastline cleaned with every loan settled.
            More details
            VariableMore details
            • Fully functioning offset.
            • Rapid Refinance available - receive approval in as little as 48hrs
            • 50m2 of beach & coastline cleaned with every loan settled.

            WLTH – Ocean SMSF 90 P&I ($50k - $1.5m)

            • Fully functioning offset.
            • Rapid Refinance available - receive approval in as little as 48hrs
            • 50m2 of beach & coastline cleaned with every loan settled.
            More details
            VariableMore details
            Includes NOV RBA Rate Increase
            • Available for Purchase and Refinance
            • No application fee and no settlement fee
            • No monthly, annual or ongoing fees
            Includes NOV RBA Rate Increase

            loans.com.au – SMSF 80

            • Available for Purchase and Refinance
            • No application fee and no settlement fee
            • No monthly, annual or ongoing fees
            More details
            • Refinance only offer. No application fee and no settlement fee
            • No monthly, annual or ongoing fees
            • Access your SMSF loan via our easy-to-use online app Smart Money

            More details
            Important Information and Comparison Rate Warning

            Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of November 30, 2023. View disclaimer.

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