Concessional (Before-Tax) Cap — $30,000
Concessional contributions are taxed at 15% inside your super fund instead of your marginal rate. They include:
- Employer super guarantee (12%)
- Salary sacrifice contributions
- Personal contributions you claim a tax deduction for
Example: On a $100,000 salary, your employer pays $12,000 in super guarantee. That leaves $18,000 of cap space for salary sacrifice or deductible personal contributions.
Non-Concessional (After-Tax) Cap — $120,000
Non-concessional contributions are made from your after-tax income. They're not taxed going in (you already paid tax on the money). This cap is $120,000 per year, or you can bring forward up to 3 years ($360,000) if you're under 75.
Important: The non-concessional cap is only available if your total super balance is under $1.9 million. The bring-forward rule reduces based on your balance.
Catch-Up Concessional Contributions
If you didn't use your full $30,000 concessional cap in previous years (from 2018–19 onwards) and your total super balance is under $500,000, you can carry forward the unused amounts for up to 5 years.
This is powerful for people who've had years of part-time work, career breaks, or simply didn't salary sacrifice. You can make a large catch-up contribution in a single year and claim the tax deduction.
What Happens If You Exceed the Cap
| Cap Exceeded | Consequence |
|---|---|
| Concessional ($30,000) | Excess is added to your taxable income and taxed at your marginal rate (minus the 15% already paid). You can choose to withdraw the excess from super to pay the tax. |
| Non-concessional ($120,000) | Excess is taxed at 47%. You can elect to withdraw the excess to avoid this. Take this seriously — 47% is brutal. |
Frequently Asked Questions
What counts toward the $30,000 concessional cap?
Employer super guarantee, salary sacrifice, and any personal contributions you claim a tax deduction for. It's the total from all sources combined.
Can I contribute more than $30,000 to super?
Yes, using non-concessional (after-tax) contributions up to $120,000. Or use catch-up contributions if you have unused cap from previous years and your balance is under $500,000.
What's the bring-forward rule?
If you're under 75, you can bring forward up to 3 years of non-concessional contributions ($360,000 total) in a single year. Your total super balance must be under $1.66 million to use the full 3-year bring-forward.