Concessional contributions (CCs) are super contributions made before tax is taken out. They include:
A cap of $25,000 applies to CCs in the 2019/20 financial year. If you have more than one fund, all CCs made to all funds will be added up and count towards the CC cap.
The ATO will inform you if you have exceeded the CC cap. Contributions exceeding the cap will generally be taxable at your marginal tax rate (less a 15% tax offset) and an interest charge may apply.
Following notification from the ATO, you can withdraw up to 85% of any excess CCs from your super. If you leave the excess in your fund, it will count towards your non-concessional contribution cap.
From 1 July 2018, if your total super balance is less than $500,000 on the previous 30 June and you make CCs of less than $25,000 p.a, you may be able to accrue unused amounts and make catch-up contributions in subsequent financial years.
Any advice and information on this website is general only, and has been prepared without taking into account your particular circumstances and needs. Before acting on any advice on this website you should assess or seek advice on whether it is appropriate for your needs, financial situation and investment objectives.
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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