Private Wealth

What are the two types of Contributions?

By James Mousa

September 05, 2017

The two types of contributions that can be made to your Superannuation fund are known as Concessional and Non-concessional contributions.

 

Concessional contributions are before tax contributions that include Superannuation guarantee(SG), employer contributions, contributions made under a salary sacrifice arrangement and tax deductible contributions by an individual. This year, for the first time ever – Concessional Contributions can be made by ANYONE where previously it was limited to the self-employed. Importantly concessional contributions are generally subject to just 15% contributions tax* though some limits do apply.

 

Non-concessional are after tax contributions including spouse contributions. Non concessional contributions are important because they provide tax concessions in retirement and may attract the government co-contributions.

 

* 30% contributions tax applies to Concessional contributions for anyone earning more than $250,000.