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What are non-concessional contributions?

Non-concessional contributions are contributions made to your super from your after-tax income. These contributions are not taxable in the fund.

These contributions can be made by you up to the age of 75.

There is a limit to the amount of funds that can be accepted by a fund in respect of any member. This is the non-concessional contribution cap - the limit for this for 2011-12 is $150,000. We are required to return any contributions above the cap or any non-concessional contribution where you have not quoted your Tax File Number within 30 days of making the contribution.

Contributions above the concessional cap also count towards the non-concessional cap. There is flexibility to make higher non-concessional contributions for people under the age of 65 which allows you to bring forward two years worth of non-concessional contributions. This means that you can contribute up to $450,000 over three years without exceeding the cap.

If your non-concessional contributions exceed the cap, the excess amount of contribution will be taxed at a rate of 46.5%. This tax can be paid from your super account, other savings or both.

There are some contributions which are exempt from the non-concessional contributions which are:

  • Up to $500,000 of proceeds from the disposal of eligible small business assets.
  • The proceeds from a settlement of a total and permanent disability.
  • Government co-contributions.

Important Notice

The advice contained on the Prime Super website does not take into account your particular objectives, needs or financial situation. Before making a decision regarding the acquisition or disposal of a financial product, you should assess whether the advice is appropriate to your objectives, needs or financial situation. You may wish to make this assessment yourself or seek the help of an adviser. Prime Super takes no responsibility for you acting on the information provided. Any decision that you make is at your own risk. Before acquiring a financial product you should obtain a Product Disclosure Statement (PDS) relating to that product and consider the contents of the PDS before making a decision about whether to acquire the product.

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