What are Non-Concessional Contributions into Super?

Non-concessional contributions into super refer to contributions made to a superannuation fund with after-tax money, as opposed to pre-tax money, which is known as concessional contributions. Non-concessional contributions are made from a person's after-tax income and are not subject to the concessional tax rate that applies to concessional contributions.

Examples of non-concessional contributions can include:

• Personal after-tax contributions: These are voluntary contributions made by an individual into their own super account, using money that has already been taxed.
• Spouse contributions: These are contributions made by a spouse or partner into the other partner's super account, using after-tax money.
• Inheritance or windfall gains: These are contributions that are made from an inheritance or other unexpected financial gain, such as the sale of a property, into a person's super account.
• Downsizer contributions: These are contributions that can be made by people over 65 years old who sell their home, and make a one-time contribution of up to $300,000 per person into their super account.

Non-concessional contributions have a lower annual cap than concessional contributions, which is currently set at $110,000 per financial year (as of the 2022-2023 financial year). However, individuals who are under the age of 67 can also use the "bring-forward rule," which allows them to make up to three years' worth of non-concessional contributions in a single year (up to a maximum of $330,000).

It's important to note that there are rules and limits around non-concessional contributions, and exceeding these limits can result in additional taxes and penalties. It's also important to consider individual circumstances and financial goals before making any contributions to a superannuation fund.