Concessional contributions are contributions that are made into your super fund before tax. They are taxed at a rate of 15% in your super fund.
From 1 July 2021, the concessional contributions cap is $27,500. The increase is a result of indexation in line with average weekly ordinary time earnings (AWOTE).
From 1 July 2017 to 30 June 2021, the concessional contribution cap for each year is $25,000.
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).
If you exceed your concessional contribution caps, we will send you a letter (determination) and a notice of assessment. You may receive these in your myGov Inbox.
The correspondence will tell you:
- your excess concessional contributions
- your excess concessional contributions charge
- what options are available.
If you receive a letter you must lodge a tax return for that year.
If your combined income and concessional contributions are more than $250,000 you may have to pay extra tax, see Additional tax on concessional contributions (Division 293).
Find out about:
- Types of concessional contributions
- Timing of contributions
- Working out your concessional contributions cap
- Carry-forward unused concessional contributions
Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Please consider whether the information is appropriate to your circumstance before acting on it and, where appropriate, seek professional advice.