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.