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Non-concessional contributions cap

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There is a limit on the amount of after-tax and other ‘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) for more information.

What is the NCC cap in 2018/19?

The NCC cap available in 2018/19 depends on your total super balance on 30 June 2018, your age and certain other factors – see table below. If you have more than one fund, all NCCs made into all funds will be added up and count towards the NCC cap.

NCC Cap Total super balance on 30/6/2018 Cap available in 2018/19
Annual cap

< $1.6 million

$100,000

Bring-forward cap
(available if under age 65 and enables you to bring forward up to two years NCCs)

< $1.4 million

$300,000

$1.4 million to < $1.5 million

$200,000

$1.5 million to < $1.6 million

$100,000

$1.6 million +

Nil

Note: A higher ‘transitional’ bring-forward amount may be available if you made NCCs between $180,000 and $540,000 in 2016/17 see (ATO) for more information.    

What happens if you exceed the NCC cap?

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 (as determined 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).

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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.

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.