SMSF contribution cap & tax

author-avatar By on September 27, 2021
SMSF contribution cap & tax

The ATO limits the amount you can contribute to your super each year. These contributions fall into two categories, concessional and non concessional.

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


$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


$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.


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).


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

Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval
VariableMore details


  • Easy refinance process
  • No application fee and no settlement fee
  • No monthly, annual or ongoing fees


  • Easy refinance process
  • No application fee and no settlement fee
  • No monthly, annual or ongoing fees
FixedMore details

SMSF 80 Fixed 5 Years (Purchase) (New Customer)

VariableMore details

Liberty SuperCredit SMSF (LVR < 60%)

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 made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. 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. *Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given Rates correct as of October 23, 2021. View disclaimer.

Image by Christian Bown via Unsplash


The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Great Southern Bank, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and

Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.

In the interests of full disclosure,, Performance Drive and are part of the Firstmac Group. To read about how manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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Aaron joined in 2021. He is a finance journalist with a keen interest in property, the share market, and improving financial literacy in young Australians.


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