Non-concessional contributions cap
There is a limit on the amount of after-tax or ‘non-concessional’ contributions you can make each year to your super.
What are non-concessional contributions?
Non-concessional contributions (NCCs) are super contributions made from after-tax pay or savings. They include:
- personal contributions you make into your own super account that are not claimed as a tax deduction.
- personal contributions made by your spouse into your super account (spouse contributions), and
- certain other amounts, see the Australian Taxation Office (ATO, opens in new window) for more information.
What is the NCC cap in 2024/25?
The general NCC cap available in 2024/25 is $120,000. However, depending on your total super balance on 30 June 2024 and certain other factors you may be able to utilise the bring-forward rule – see table below.
Your NCC cap amount that you can bring forward, and whether you have a two or three year bring-forward period, will depend on a number of factors, including your total super balance and previous NCCs made.
If you have more than one fund, all NCCs made into all funds will be added up and count towards the NCC cap.
| Age - under 75* | Total super balance on 30/6/2024 | NCC cap available in 2024/25 |
|---|---|---|
| Annual cap | < $1.9 million |
$120,000 |
| Less than 75 at any time in the financial year using the bring forward rule1 |
< $1.66 million |
$360,000 |
$1.66 million to < $1.78 million |
$240,000 |
|
$1.78 million to < $1.9 million |
$120,000 |
|
$1.9 million + |
Nil |
|
| *Contributions must generally be accepted no later than 28 days after the month in which you turn 75. |
What happens if you exceed the NCC cap?
Your super fund does not monitor your contribution caps so it is important that you ensure you’re not going to exceed your cap before making contributions. The ATO will inform you if you have exceeded the NCC cap. If you do, you can withdraw the excess NCCs and 85% of earnings (earnings are calculated at a set rate by the ATO). 100% of the earnings will generally be taxable at your marginal tax rate (less a 15% tax offset). If don’t withdraw the excess NCCs, they will be taxed at the top marginal tax rate of 47% (including the Medicare levy).
Want to know more?
For more information on the NCC cap, see the (ATO, opens in new window).
What next?
Find out more about Super and retirement rules.
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General advice and information only
The information in this communication in general in nature and does not take into account your objectives, financial situation or needs. Because of that, before acting on this information, you should consider its appropriateness, having regard to your objectives, financial situation and needs, plus consider the relevant Product Disclosure Statement. We recommend you obtain financial advice tailored to your own personal circumstances.
Tax disclaimer
Any general tax information on this website is intended as a guide only and is based on our general understanding of taxation laws. It is not intended to be a substitute for specialised taxation advice or an assessment of your liabilities, obligations or claim entitlements that arise, or could arise, under taxation law, and we recommend you consult with a registered tax agent.
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